Leave a Message

Thank you for your message. We will be in touch with you shortly.

Owning Your Home Helps You Build Wealth

Owning Your Home Helps You Build Wealth

You may have heard some people say it’s better to rent than buy a home right now. But, even today, there are lots of good reasons to become a homeowner. One of them is that owning a home is typically viewed as a good long-term investment that helps your net worth grow over time.

Homeownership Builds Wealth Regardless of Income Level

You may be surprised to learn homeowners across various income levels have a much higher net worth than renters who make the same amount. Data from First American helps illustrate this point (see graph below):

What makes wealth so much higher for homeowners? A recent article from Realtor.com says:

“Homeownership has long been tied to building wealth—and for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.”

Basically, the wealth you accumulate when you own a home has a lot to do with equity. As a homeowner, equity is built up as you pay down your loan and as home prices appreciate over time. Mark Fleming, Chief Economist at First American, explains how this same benefit isn’t true for renters in a recent podcast:

“Renters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.”

Before you decide to sign another rental agreement, now is a good time to think about whether it would be better for you to buy a home instead. The best way to figure out what makes sense for you is to have a conversation with a real estate expert you trust. That professional can talk you through the benefits that come with owning to determine if that’s the right next step for you. 

Bottom Line

If you're not sure whether to keep renting or to buy a home, know that owning a home, no matter how much money you make, can help build your wealth. Let's connect now to get started on the path to homeownership.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The Home Run Team, Ltd. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The Home Run Team, Ltd. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Recent Blog Posts

How Buying or Selling a Home Helps Your Local Economy

Whether you’re buying or selling a house, here’s something to think about that most people don’t.

What You Need To Know About Homeowner’s Insurance

Homeowner’s insurance is a must-have to protect what’s probably your biggest investment – your home. Here's why.

It’s Time To Put Your House Back on the Market

If you pulled your listing last year, now is the time to put it back up; with a new strategy.

Is It Time To Put Your House Back on the Market?

If you took your house off the market in late 2024, you’re not the only one. But now, with spring fast approaching, it’s time to reassess.

Rising Inventory Means This Spring Could Be Your Moment

With the large rise in homes available on the market, this could be your time to get in on the market.

What You Need To Know About Pre-Approval

Before you even start looking at homes, there's something you should do first: get pre-approved for your mortgage.

Is the Housing Market Balancing Out?

We've been in a seller's market for around a decade now, but the market is starting to flip. Is It balancing out?

Is the Housing Market Starting To Balance Out?

Is the market finally balancing out? And does that mean buyers will have it a bit easier now? Here’s what you need to know.

Buying Your First Home? It’s Okay To Feel Nervous

The homebuying process has always been a mix of excitement and nerves, and that’s completely normal. Here's some information that can save you stress.

Let Us Win For You

We're here to help people live wealthier lives and enjoy more freedom by educating and guiding them through their lifelong real estate journey. Whether you're buying a home, looking to sell or relocate, or are an investor, we can help you. No agents will work harder for you, because to us, going to bat for you, isn't work. That's just what you do when you're a team.

Follow Me On Instagram