Homeownership Is Full of Financial Benefits

Reblogger
Real Estate Broker/Owner with Harry Norman, REALTORS® #331379

Thank you Shayne Stone for your original blog. 

Original content by Shayne Stone 0561240

A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in todays power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:

  • 88% – a better chance of saving for retirement
  • 87% – the best investment plan
  • 85% – the chance to be better off financially
  • 85% – the chance to build up wealth

Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget.

Does homeownership actually give you a better chance to build wealth?

No one can question a persons unique feelings about the importance of homeownership. However, its fair to ask if the numbers justify homeownership as a financial asset.

Last fall, the Federal Reserve released the Survey of Consumer Finances, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters (255,000 for homeowners compared to 6,300 for renters).

The difference in net worth between homeowners and renters has continued to grow. Here's a graph showing the results of the last four Fed surveys:HomeownershipThe above graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by 26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.

Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. Here are the findings:HomeownershipOthers may think homeowners are older and that's why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals:

The ability to build equity puts homeowners far ahead of renters in terms of household wealth the median owner age 65 and over had home equity of 143,500 and net wealth of 319,200. By comparison, the net wealth of the same-age renter was just 6,700.

Homeowners 65 and older have 47.6 times greater net worth than renters.

Bottom Line

The idea of homeownership as a direct way to build your net worth has met the test of time. Lets connect if you're ready to take steps toward becoming a homeowner.

 

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Comments (4)

Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great informaton Shayne!

  • 88% – a better chance of saving for retirement
  • 87% – the best investment plan
  • 85% – the chance to be better off financially
  • 85% – the chance to build up wealth
Apr 11, 2021 06:44 AM
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Thanks for sharing this information.  Have a great day!

Apr 11, 2021 08:22 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Anthony, this is very good report for homeownership is full of financial benefits.

Apr 11, 2021 09:21 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Anthony and you came up with a excellent reblog to share with those that missed it first time around

 

Apr 11, 2021 09:54 AM