Owning a home has long been considered a reliable way to build wealth over time. According to the Federal Reserve, the median net worth of a homeowner is $248,800, while the median net worth of a renter is only $5,200. This is a significant difference and highlights the potential for homeownership to contribute to long-term wealth creation.

Historically, home values have appreciated at a steady rate. According to the National Association of Realtors, the median existing home price increased by 3.8% annually from 1968 to 2018. As a homeowner, you have the potential to gain equity in your property through mortgage payments and appreciation.

Furthermore, homeownership is considered a wealth-building tool for the middle class: A study by the Urban Institute shows that homeownership is the largest source of wealth for households in the bottom 80% of the income distribution.

In contrast, renting a home provides no long-term financial benefits. Renters do not have the opportunity to build equity and are essentially making payments to a landlord that do not benefit them financially in the long run. Also, rental prices have been increasing rapidly, especially in large metropolitan areas, making it difficult to save for homeownership.

Additionally, owning a home can provide a sense of stability and security that renting cannot. Homeowners have the freedom to make changes to their property and have a sense of ownership and control over their living space. They also have a vested interest in the community, which can lead to a greater sense of belonging and connection.

Of course, owning a home also comes with its own set of responsibilities, such as maintenance and property taxes. However, for many, the long-term financial benefits outweigh the costs associated with homeownership.

As a mortgage company, we understand the importance of homeownership and the role it plays in building wealth over time. We are dedicated to helping our clients find the best mortgage options to make their dream of homeownership a reality. By providing our clients with the education and guidance they need to make informed decisions, we can help them take advantage of the many benefits of homeownership and build wealth over time.