Still on the fence about becoming a homeowner? Keep reading for some convincing info!
If you’re deciding between renting and taking the title of homeowner, consider this key data point. The Federal Reserve Board’s Survey of Consumer Finances (SCF) shows that homeowners have a significantly higher net worth than renters! In the most recent SCF report, the average homeowner’s net worth far exceeded that of renters. And the gap is growing substantially. Homeowner net worth has surged — thanks in large part to home equity.
In recent years, housing experienced remarkable growth in what some have dubbed the ‘unicorn’ years. A shortage of homes for sale and record-low mortgage rates drove prices sky-high. Homeowners who owned property during this period saw their equity soar.
If you’re worried you missed out on this net worth boost, don’t fret! Homeownership remains a powerful wealth-building tool. Historically, home prices appreciate over time. Even with slightly higher mortgage rates today, prices continue to rise in many areas due to limited supply.
While the pace of appreciation may not match the recent surge, buying a home now is still an investment in your financial future. According to Jessica Lautz, deputy chief economist at the National Association of REALTORS®, “There is no question about the wealth gains that homeownership provides.”
In summary, if you’re unsure about renting versus buying, keep in mind that homeownership can significantly increase your net worth over time! To explore this and other homeownership benefits, reach out to your local Surterre agent today at SurterreProperties.com.
