Recently, our homes have become much more than just a place we go to relax or prepare for the next day.. They are evolving into our workplaces, schools for our children, and safe havens that provide shelter, stability, and protection for our families through this worldwide pandemic. Today, 65.3% of Americans are able to call their homes their own, a rate that has risen to its highest point in 8 years.
June was National Homeownership Month, and now is a great time to reflect on all the benefits of owning your own home. Below are some highlights and quotes recently shared by the National Association of Realtors (NAR). From non-financial to financial, and even including how owning a home benefits your local economy, these items may give you reason to think homeownership stretches well beyond a sound dollars and cents investment alone.
Owning a home brings families a sense of happiness, satisfaction, and pride.
- Pride of Ownership: It is a great feeling having a home that belongs to you, especially since you can customize it however you see fit. “The personal satisfaction and sense of accomplishment achieved through homeownership can enhance psychological health, happiness and well-being for homeowners and those around them.”
- Property Maintenance and Improvement: Owning a home automatically makes you part of a community and gives you the chance to drive value in that community: your neighborhood.
- Civic Participation: Owning a home helps you become more stable, obtain a sense of community, raise civic engagement, and allows your local area to grow stronger.
Buying a home is also an investment in your family’s financial future.
- Net Worth: Homeownership builds your family’s net worth. “The median family net worth for all homeowners ($231,400) increased by nearly 15% since 2013, while net worth ($5,000) actually declined by approximately 9% since 2013 for renter families.”
- Financial Security: Equity, appreciation, and predictable monthly housing expenses are huge financial benefits of homeownership. If you want to improve your long term net worth, becoming a homeowner is a good way of doing so.
Homeownership is even a local economic driver.
- Housing-Related Spending: While looking at the country’s economic activity over the past three years one sixth is household related expenses.
- GDP Growth: Even though our economy is taking a hit right now, homeownership drives GDP growth. “Every 10% increase in total housing market wealth would translate to approximately $147 billion in additional consumer spending, or 0.8% of GDP, as well as billions of dollars in new federal tax revenue.”
- Entrepreneurship: Being a homeowner forces you to save, this provides entrepreneurial opportunity. “Owning a home enables new entrepreneurs to obtain access to credit to start or expand a business and generate new jobs by using their home as collateral for small business loans.”
The benefits of homeownership are immense and go well beyond the surface level. Homeownership is truly a way to build financial freedom, find greater satisfaction and happiness, and make a substantial impact on your local economy. If possessing a home is part of your vision, let's connect today so you can begin the homebuying process with the Apex Home Loans team.