Homeownership Is Still at the Heart of the American Dream
Purchasing a home is a significant choice and continues to be a cornerstone of the American Dream. Unlike renting, homeownership represents more than just acquiring a residence; it provides a profound sense of belonging, stability, and freedom.
According to Nicole Bachaud, Senior Economist at Zillow:
“The American Dream is still owning a home. There’s a lot of pent-up demand for ownership; that isn’t going to go away.”
Let’s explore just a few of the reasons why so many Americans continue to value homeownership.
The Financial Benefits of Owning a Home
One potential explanation for the esteemed perception of homeownership is its role as a substantial tool for building wealth. That may be why Jessica Lautz, Deputy Chief and VP of Research at the National Association of Realtors (NAR), says:
“Homeownership is the number one way to build wealth in America.”
Over time, owning a home not only helps boost your own net worth, but it also sets future generations up for success as you pass that wealth down. Habitat for Humanity explains:
Overall, homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Homeowners make monthly payments that increase their equity in their homes by paying down the principal balance of their mortgage. . . . In addition, owning a home promotes intergenerational homeownership and wealth building. Children of homeowners transition to homeownership earlier — lengthening the period over which they can accumulate wealth . . .”
Additionally, it can offer significant financial stability in comparison to renting. Opting for a fixed-rate mortgage allows you to secure your monthly housing payments throughout the duration of your home loan.
The Non-Financial Benefits of Homeownership
However, homeownership goes beyond financial advantages; it also contributes to your social and emotional well-being. Your home fosters a sense of accomplishment, responsibility, and various other positive emotions. In a recent survey, Fannie Mae outlines just a few of these more emotionally-driven benefits, including:
“The top three were having control over what you do with your living space (94%) to having a sense of privacy and security (91%) and having a good place for your family or to raise your children (90%) . . .”
What Does That Mean for You?
If your idea of the American Dream involves greater freedom, security, and prosperity, homeownership could be a key player in bringing that dream to life. And with mortgage rates now on a downward trend, it might be a good time for you to consider making a move.
Buying a home is a powerful decision and the cornerstone of the American Dream. If finding a place to call your own is part of your dream for this year, we can help get the process started, let’s connect today!
