How Much “Housing Wealth” Can You Build in a Decade?

By
Real Estate Agent with REMAX Realty Group Lic. # SL3154233

Earlier this month, the National Association of Realtors (NAR) released a special study titled Single-Family Home Price Gains by Years of Tenure. The study estimates median home price appreciation over the last 30 years based on the length of homeownership.

Below are three graphs depicting the most important data revealed in the study.

How much have home prices increased?

One of the first measures of the financial benefits of homeownership is the net worth (in the form of equity) an owner can build over time. The study showed the average increase in home values based on how long homeowners stayed in a home.

Home equity in a house

What was the percentage of appreciation?

Another way to look at this is by the percentage increase in value over time, called appreciation:

What's the equity on my home

Was this appreciation consistent throughout the country?

Today, when we think of markets that have done well over the last decade, we have a tendency to think about San Francisco, San Diego, Seattle, and other West Coast cities. Though it is true the West Region showed the highest price growth over the last three decades, we can see how every region of the country did quite well in ten-year increments:

equity in a house

This data validates the claim that homeownership is great for building wealth. The importance of this information was highlighted in the study’s first sentence:

“Homeownership is an important source of wealth creation, enabling current homeowners and succeeding generations to move up the economic ladder.”

Bottom Line

Homeownership has many financial and non-financial benefits. The accumulation of “housing wealth” through increased equity is a major one. If you’re thinking of buying a home for the first time or moving up to your dream home, the sooner you make the move, the sooner your net worth will begin to grow.

 

information provided by KCM

Posted by

 

Abby Stiller 

Realtor® Lic. #3154233    

12 Years of Experience

RE/MAX Realty Group    Cape Coral Fort Myers Naples  Realtor Cape Coral      

 

I help Home buyers find their dream home & Homeowners sell for more. Thinking of buying or selling? Call/Text me: 239-284-8637   Your Honest & Dedicated Realtor!

or visit: www.TeamStiller.com

 

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Rainmaker
2,994,199
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Abby Stiller home ownership is one of the best investment for families. Excellent post!

Mar 03, 2020 08:15 PM #1
Rainmaker
5,320,164
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning Abby Stiller homeownership is NOT day trading..... it's a long term investment and the owner can make a "score" if kept lon enough and sold at the right time....

Mar 04, 2020 03:56 AM #2
Rainmaker
536,368
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Totally John Pusa It's the biggest investments. 

Mar 04, 2020 04:24 PM #3
Rainmaker
536,368
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Hi Barbara Todaro Yes In most cases the longer they keep it the more equity they create in a home.

Mar 04, 2020 04:36 PM #4
Rainmaker
3,395,980
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Abby another great blog that makes lots of sense and some of it I will be using in my Buyer seminar next month.

 

Mar 05, 2020 09:28 AM #5
Rainmaker
536,368
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Good luck with your buyer's seminar next month Will Hamm 

Mar 06, 2020 09:54 AM #6
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Abby Stiller

Professional Bilingual Realtor (239) 284-8637
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