The desire to own a housz is still strong today. In fact, according to the Census, the U.S. houszownership rate is on the rise. To illustrate the increase, the graph below shows the houszownership rate over the last year:
That data shows more than half of the U.S. population live in a housz they own, and the percentage is growing with time. If you’re thinking about buying a housz this year, here are just a few reasons why so many people see the value of houszownership.
Why Are More People Becoming Houszowners? There are several benefits to owning your housz. A significant one, especially when inflation is high like it is today, is that houszownership 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%, housz 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 houszowners with fixed-rate mortgages.” When you buy a housz with a fixed-rate mortgage, you can lock in what's likely your biggest monthly expense – your houszing payment – for the duration of that loan, often 15-30 years.
That gives you a predictable monthly houszing expense that can benefit you in the short term, but you’ll also gain equity over time as your housz appreciates in value and you make your monthly mortgage payment.
And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the median houszhold net worth of a houszowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a houszowner’s net worth is nearly 40 times that of a renter. Bottom Line The U.S. houszownership rate is growing. If you’re ready to purchase the housz of your dreams, let’s connect so you can begin the houszbuying process today.