The U.S. Homeownership Rate Is Growing
Tuesday Sep 20th, 2022
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. The graph below displays the homeownership rate over the previous year to demonstrate the rise:
That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.
If you’re thinking about buying a home this year, here are just a few reasons why so many people see the value of homeownership.
Why Are More People Becoming Homeowners?
There are several benefits to owning your home. A significant one, especially when inflation is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”
When you purchase a home with a fixed-rate mortgage, you may fix your housing payment for the loan's lifetime, 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 roughly 40 times more than that of a renter.
The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the home-buying process today.