The desire to own a home is still strong today. In fact, according to the Census, the U.S. homeownership rate is on
the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:
That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with
time. If you’re thinking about buying a home this year, here are just a few reasons why so many people see the
value of homeownership.
Why Are More People Becoming Homeowners?
There are several benefits to owning your home. A significant one, especially when inflation is high like it is today,
is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National
Association of Realtors (NAR), explains: “In the 1970s, when inflation was running around 10%, home prices were
rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents
tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate
When you buy a home with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense –
your housing payment – for the duration of that loan, often 15-30 years. That gives you a predictable monthly
housing expense that can benefit you in the short term, but you’ll also gain equity over time as your home
appreciates in value and you make your monthly mortgage payment.
And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the
median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only
about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.
The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so
you can begin the homebuying process today.
Consumer Protection & Privacy
© 2022 All rights reserved
Created with Placester
Sign in with your email address
Enter your email address