Home Buyer December 10, 2024

Why Owning a Home Helps Build Wealth in the Long Run

Owning a home helps you build wealth.  Stability is hard to beat when it comes to peace of mind.  Add to that the reality that owning property is a clear path to build wealth and every person, every family should do everything in their power to buy a home now.  Living in a rental, you always are thinking of where you may need to move to next.  You just subconsciously know this is not YOUR home.  And you’re helping your landlord build wealth, not you or your family.

 

Today’s mortgage rates and home prices may have you second-guessing whether it’s still a good idea to buy a home right now. While market factors are definitely important, there’s also a bigger picture to consider: the long-term benefits of homeownership.

 

Think of it this way. If you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. That’s because over time, home values usually grow – and that means a homeowner’s net worth does too. Here’s a look at how that can really add up over the years.

 

If you think you don’t have the money to buy a property, talk with a professional.  You may not need as much as you think. If the deal is arranged well, your out of pocket can be very low. Here’s a quick read article that talks about 1 of the ways to come up with the money needed: The Down Payment Assistance You Didn’t Know About

 

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show how much prices have grown over the last five years. Since home prices vary by area, the map is broken out regionally to really showcase larger market trends:

a map of the united states

 

You can see that nationally, home prices increased by over 57% in just five years.

Some regions are slightly above or below that average, but overall, home prices saw a big uptick in a short time. And if you zoom out even more, the benefit of homeownership — and the drastic gains homeowners made over the years — become even more clear (see map below):

The second map shows that, over a roughly 30-year span, home prices appreciated by an average of more than 320% nationally.

 

So the typical homeowner who bought a house about 30 years ago saw their home triple in value during that time. And that’s a major reason so many homeowners who bought their homes years ago are still happy with their decision today.

Bottom Line

There’s no denying today’s market is complex. But if you’re ready and able to buy right now, let’s connect to talk about how we can still make your move happen. That way you can take advantage of the long-term advantages that come with homeownership, like your ability to build wealth as your home value rises.