Owing A Home Remains The Heart Of The American Dream
Acquiring a home is a significant and enduring choice that is central to the American Dream. Unlike renting, home ownership transcends mere shelter; it provides a sense of belonging, stability, and freedom. As noted by 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 delve into a handful of reasons that elucidate why numerous Americans persist in placing a high value on homeownership.
The Financial Advantage Of Homeownership
A potential explanation for the elevated regard for homeownership lies in its role as a substantial instrument for wealth accumulation. This perspective is echoed by Jessica Lautz, Deputy Chief and VP of Research at the National Association of Realtors (NAR), who suggests:
“Homeownership is the number one way to build wealth in America.”
As time progresses, homeownership not only contributes to enhancing your net worth but also lays the groundwork for the success of future generations as you pass down that accumulated wealth. Habitat for Humanity elaborates:
“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 substantial financial stability in contrast to renting. Opting for a fixed mortgage allows you to secure consistent monthly housing payments throughout your home loan.
The Non-Financial Benefits Of Homeownership
Beyond financial considerations, owning a home yields social and emotional benefits. Homeownership fosters feelings of accomplishment and responsibility, as outlined in a survey by Fannie Mae, showcasing the emotional aspects of this decision.
“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 This Means For You
If your vision of the American Dream includes increased freedom, security, and prosperity, homeownership stands as a vital component in realizing that vision. With current downward trends in mortgage rates, now may be an opportune moment to contemplate this significant move.
For those prepared to embark on a journey of homeownership, the rewards extend beyond a mere residence. It becomes a place to cultivate wealth and call your own, as expressed by Ksenia Potapov, Economist at First American.
“…homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”
Acquiring a home is a momentous decision and the cornerstone of the American Dream. If the pursuit of a place to truly call your own aligns with your aspirations this year, consider reaching out to us to initiate the process. The benefits awaiting you extend beyond a physical space; it is an investment in both your financial future and the fulfillment of a cherished dream.