Updated September 7th, 2023
A key to building a strong financial future is through homeownership. The Federal Reserve indicates in a recent study that net worth of a homeowner 40 times greater than that of a renter. If you dont already own maybe it’s time to start thinking about buying a home, especially when they’re so affordable with historic low interest rates.
The Survey of Consumer Finances , released every three years, shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready.
Build family wealth through homeownership.
Homeownership for so many families, serves as a form of ‘forced savings.’ Every time you make a mortgage payment, you’re contributing to your net worth by increasing the equity you have in your home (See chart below):
Home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment once again. According to this year’s survey, 34% of Americans chose real estate over stocks, savings accounts, gold, and bonds.
Today, with the right help, there are great opportunities available for those planning to buy a home in Northern Virginia. Despite the high home prices, low inventory, and mortgage rates this NAR Article reports that Americans still appear eager to buy a home. 54% of consumers say now is a good time to purchase, according to TD Bank’s latest Mortgage Service Index. If you’re ready, buying a home this fall and winter can set you up to increase your net worth and create a safety net for your family’s future.
Bottom Line
To learn how you can use your monthly housing cost to build your family’s net worth, let’s connect so you have a trusted professional to guide you through the homebuying process in Northern VA.
