It is growing!
Today, there is still a strong desire to own a home. In actuality, the Census shows an increase in the homeownership rate in the United States.
Here are just a few explanations as to why owning a home is so valuable to so many people, in case you're considering doing so this year.
Why Are More People Becoming Homeowners?
The advantages of home ownership are many. A significant one is that owning a home can help shield you from cost increases, particularly when inflation is high, as it is right now. The National Association of Realtors' (NAR) Chief Economist, Lawrence Yun, explains:
When inflation was around 10% in the 1970s, home prices increased roughly at the same rate. Renters actually struggle more during inflationary times because their monthly rent increases at the same rate as inflation while homeowners with fixed-rate mortgages see no change in their mortgage payments.
With a fixed-rate mortgage, you can fix your housing payment, which is likely to be your largest monthly expense, for the life of the loan, which is typically 15 to 30 years.
This gives you a stable monthly housing expense that may be advantageous in the short term, but as your home's value increases and you continue to make your mortgage payments, you will also build equity over time.
Your net worth will rise along with that rising equity. The median household net worth of a homeowner is actually around $300,000, whereas the median net worth of renters is only about $8,000. This is according to the most recent data from NAR. Thus, the net worth of a homeowner is nearly 40 times greater than that of a renter.
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