Why Many Americans Would Be Willing to Join the NewVistas Economic System:

An Analysis of Net Worth Distribution, Renting Trends, and Social Incentives

Abstract

The NewVistas economic model proposes a radical restructuring of economic and social systems, where communities of 75,000 to 100,000 people operate under a greener, more equitable framework, enjoying higher standards of living, and enjoying superior social and economic prosperity. In this system, individuals rent all assets, invest their net worth into a community capital bank, and share profits, fostering equal opportunity and upward mobility.

This paper examines why a significant portion of the U.S. population would be willing to join such a system, focusing on net worth distribution, renting trends, and the social and economic incentives offered by NewVistas. Using data from the Federal Reserve’s 2022 Survey of Consumer Finances (SCF), we show that the 30% of U.S. households with an average net worth of $20,000—many of whom are renters with limited wealth—have strong incentives to participate due to the promise of greater sociality and upward mobility. Additionally, we analyze the correlation between renting and net worth, demonstrating that renters, who often have lower net worth, are more likely to join NewVistas compared to homeowners, unless the latter have little to no home equity.

Introduction

The NewVistas economic model presents a vision of sustainable, community-driven living where traditional ownership is replaced by a rental-based system, and wealth is pooled into a community capital bank for profit sharing. Communities are designed to house 75,000 to 100,000 people, emphasizing environmental sustainability and equal opportunity. The model, as depicted in the provided diagram, organizes economic activities into specialized bureaus (e.g., Village, District, Economic, Regulatory, Data, Business Development, and Transport/Utilities), ensuring comprehensive governance and resource management. A key feature is that all participants invest their net worth into the capital bank, forgoing individual asset ownership in favor of communal benefits.

While the very wealthy may be reluctant to liquidate their assets and join, the majority of Americans—particularly those with lower net worth—stand to gain from the system’s structure. This paper argues that the NewVistas model is particularly appealing to the 30% of U.S. households with an average net worth of $20,000, a group that includes many with negative net worth or limited assets. Furthermore, we explore how renting correlates with lower net worth and how this demographic trend increases the likelihood of participation in NewVista, especially among renters compared to homeowners with significant home equity.

Net Worth Distribution in the United States

To understand the potential appeal of NewVista, we first examine the net worth distribution in the U.S. The Federal Reserve’s 2022 Survey of Consumer Finances (SCF), released in October 2023, provides the most recent comprehensive data on household wealth. Key percentiles are as follows:

10th percentile: $450
25th percentile: $27,100
50th percentile (median): $192,084
75th percentile: $658,979
90th percentile: $1,920,758

As calculated previously, the bottom 30% of U.S. households—starting from those with negative net worth—have an average net worth of approximately $20,000. This group, representing over 38.7 million households or about 96.75 million individuals (30% of the population, assuming an average household size of 2.5), is the primary focus of this paper. These households have limited wealth, with many facing negative net worth due to debts such as student loans (averaging $38,000 among those in net debt, per the Aspen Institute). In contrast, the top 10% (net worth above $1.92 million) and especially the top 1% (net worth above $10.8 million) hold a disproportionate share of wealth, highlighting the inequality that NewVistas seeks to address.

Renting Trends and Correlation with Net Worth

Renting is a significant aspect of the U.S. housing landscape. Its prevalence strongly correlates with net worth, influencing the likelihood of joining an economic system like NewVistas that is based entirely on renting assets. According to recent data, approximately 34.3% of U.S. households—around 45 million—rented their homes in 2023, a slight increase from 33.5% in 2014. This translates to roughly 114.4 million individuals, or 35% of the population, assuming an average household size of 2.54.

The correlation between renting and net worth is stark. Data from the 2019 SCF, as analyzed by Pew Research, shows that 87.6% of households with net worth below the 25th percentile ($27,100 in 2022) are renters, while only 10.5% of those in the top income quartile rent. The average net worth of renting households in 2022 was $162,444, compared to $1.626 million for homeowners—a tenfold difference.

Excluding home equity, homeowners’ wealth is still 8.3 times that of renters. The median net worth of renters is even lower, at $6,300, according to a 2022 analysis by RubyHome, while homeowners have a median net worth 40 times higher. This disparity is driven by the fact that renting households often have lower incomes (median of $42,500 versus $86,000 for homeowners) and are more likely to be younger (median age 39 versus 56 for homeowners), with limited opportunities to build equity.

The bottom 30% of households, with an average net worth of $20,000, includes a significant portion of renters. Given that 87.6% of those below the 25th percentile are renters, and the 30th percentile falls just above this threshold, we can estimate that a large majority of this group—likely 80–85%—are renters. This group faces substantial financial pressures: 49.6% of renters spend over 30% of their income on rent and utilities, and 26.7% spend over 50%, classifying them as rent-burdened. These financial constraints, combined with low net worth, make the NewVistas model appealing, as it eliminates the burden of asset ownership while offering profit sharing and access to resources.

Likelihood of Joining NewVistas: Renters vs. Homeowners

The NewVistas system, which requires participants to rent all assets and invest their net worth into a communal capital bank, aligns naturally with the circumstances of renters, particularly those with low net worth. Renters are already accustomed to a lifestyle without asset ownership, making the transition to NewVistas’ rental-based economy less disruptive. In contrast, homeowners—especially those with significant home equity—are less likely to join unless they have little to no equity, as liquidating their primary asset (their home) would mean forfeiting a major source of wealth and stability.

Renters’ Incentive to Join: The 30% of households with an average net worth of $20,000, predominantly renters, have little to lose by joining NewVistas. For these households, liquidating assets (e.g., savings, vehicles) is less daunting than for wealthier homeowners, as their net worth is often tied up in debt rather than equity. For example, a renter household with a net worth of $6,300 (the median for renters) may have minimal savings and significant debt, making the promise of profit sharing and equal access to resources (e.g., housing, transportation) highly attractive. Additionally, renters are more likely to be younger (42% are Millennials, aged 27–41 in 2022) and face barriers to homeownership, such as student debt (55.7% of Millennial renters cite debt as a barrier to buying a home). NewVistas’ model offers these individuals a path to upward mobility without the need to accumulate capital for homeownership.
Homeowners’ Reluctance Unless Low Equity: Homeowners, with an average net worth of $1.626 million, are less likely to join NewVistas due to the significant equity tied up in their homes. Home equity accounts for a large portion of their wealth—excluding it, their net worth is still 8.3 times that of renters. For a homeowner with substantial equity (e.g., $500,000 in a paid-off home), liquidating this asset to join NewVistas means giving up a major financial safety net and potential for appreciation, which outweighs the benefits of profit sharing. However, homeowners with little to no equity—such as those with large mortgages or in negative equity (e.g., owing more than their home is worth)—may find NewVistas appealing. For instance, a homeowner with a $300,000 mortgage on a $300,000 home has zero equity, similar to a renter’s position, and may be more willing to liquidate and join. In 2022, 10.5% of top income earners (who are mostly homeowners) still rented, suggesting that some high-net-worth individuals might consider NewVistas if they lack equity or prefer renting’s flexibility.
Demographic Overlap: The overlap between renters and the bottom 30% of net worth is significant. Many renters in this group are young, rent-burdened, and lack the savings to transition to homeownership. NewVistas’ promise of a greener, more equitable lifestyle, combined with the elimination of ownership burdens (e.g., maintenance, property taxes), directly addresses their challenges. Homeowners in this net worth bracket, if they exist, are likely to have minimal equity (e.g., recent buyers with high loan-to-value ratios), making them more open to NewVistas than wealthier homeowners.

Incentives for Joining the NewVistas System

The NewVistas model offers several compelling incentives for the 30% of U.S. households with an average net worth of $20,000, particularly renters, categorized into economic, social, and environmental benefits.

1. Economic Incentives: Profit Sharing and Upward Mobility

In the NewVistas system, individuals invest their net worth into the community capital bank (as shown in the Economic Bureau, Column 3 of the diagram) and receive returns through profit sharing. For households with an average net worth of $20,000, this presents a low-risk opportunity for financial growth:

Limited Assets to Liquidate: With many in this group having negative or near-zero net worth, liquidating assets is less daunting. Renters, who lack home equity, have even less to lose compared to homeowners with equity.
Profit Sharing as a Wealth-Building Mechanism: The current U.S. system offers limited upward mobility for those with low net worth, as wage growth is stagnant and investment opportunities are inaccessible. NewVistas’ profit-sharing model ensures that all participants benefit from the community’s economic success, potentially offering higher returns than traditional savings or low-risk investments.
Equal Opportunity to Rent Assets: By renting all assets through bureaus like the Village and District Bureaus, participants gain access to resources they might not afford to own outright, leveling the playing field for renters and low-equity homeowners.

2. Social Incentives: Greater Sociality and Community Support

The NewVistas model emphasizes community living, with 75,000 to 100,000 people organized into interconnected bureaus that manage everything from health and nutrition (District Bureau) to education and data (Data Bureau). For households with limited wealth, this social structure offers significant benefits:

Enhanced Social Connections: Renters, particularly younger ones in urban areas (where 55% live in apartment buildings), often lack strong community ties. NewVistas’ design fosters sociality through shared spaces and collaborative governance.
Support Systems: Bureaus like Business Development and Public Administration provide support for individual businesses, education, and communication, ensuring access to resources. This is particularly appealing to renters, who often lack the financial stability to access such opportunities.
Cultural and Spiritual Alignment: The diagram’s references to “Melchizedek” and “Aaronic” suggest a values-driven community, which may resonate with renters seeking a sense of purpose beyond financial constraints.

3. Environmental Incentives: Greener Living

NewVistas is described as “greener than any existing” system, with bureaus like Transport/Utilities managing sustainable infrastructure. For environmentally conscious individuals, this is a significant draw:

Sustainable Living: Renters in the bottom 30% often lack the resources to adopt sustainable practices. NewVistas’ centralized approach ensures access to green technologies, reducing individual environmental footprints.
Health and Well-Being: The District Bureau’s focus on health, nutrition, and recreation promotes a healthier lifestyle, which is often out of reach for rent-burdened households.

Potential Challenges and Considerations

While the NewVistas model offers clear benefits, there are potential challenges:

Cultural Resistance to Asset Liquidation: Even among renters, giving up ownership of small assets (e.g., a car) may be difficult, though less so than for homeowners with significant equity.
Trust in the System: Renters, often skeptical of financial institutions due to experiences like the 2008 financial crisis, may hesitate to invest their net worth, though their low net worth reduces the perceived risk.
Transition Costs: Moving to a NewVistas community may involve relocation costs, which could be burdensome for rent-burdened households, though NewVistas’ provision of resources may offset this.

Conclusion

The NewVistas economic model offers a compelling alternative for the 30% of U.S. households with an average net worth of $20,000, a group that includes over 38.7 million households or 96.75 million individuals.

This demographic, predominantly renters, faces limited upward mobility and financial pressures in the current U.S. system. Renters, who constitute 34.3% of U.S. households and have significantly lower net worth (average $162,444, median $6,300) compared to homeowners (average $1.626 million), are more likely to join NewVistas due to their familiarity with renting and lack of equity to lose. Homeowners, unless they have little to no equity, are less inclined to participate due to the significant wealth tied up in their homes.

NewVistas’ promise of profit sharing, equal access to resources, enhanced sociality, and greener living directly addresses the challenges faced by low-net-worth renters, making it an attractive option for this substantial portion of the population. As such, there are plenty of people—particularly renters—who would be willing to join the NewVistas economic system, driven by the potential for a more equitable and sustainable future.