Unveiling the Enduring Benefits of Homeownership

Oct 4, 2023 | Blog

As you contemplate the prospect of becoming a homeowner, the current landscape of higher mortgage rates, surging home prices, and lingering affordability concerns may leave you questioning the wisdom of buying a home in today’s market. While these immediate market conditions are certainly important to consider, it’s equally crucial to reflect on the enduring advantages of homeownership.

Consider this: if you know individuals who purchased homes 5, 10, or even 30 years ago, you’re likely to find very few who regret their decision. Why is that the case? The answer lies in how home values appreciate over time and, by extension, how this growth enhances your personal wealth. This is perhaps why, according to a recent Fannie Mae survey, a staggering 76% of respondents view buying a home as a secure investment.

Let’s delve into the significant potential of home price appreciation over the years.

Home Price Growth over Time

The map below, drawing on data from the Federal Housing Finance Agency (FHFA), illustrates the remarkable price appreciation observed over the past five years. Given regional variations in home prices, the map is segmented to underscore broader market trends:

Benefits of Homeownership

When examining the percentage change in home prices, it becomes evident that, on average, home values across the nation have surged by over 57% in just five years.

While some regions may slightly exceed or fall below this average, overall, home prices have experienced substantial growth in a relatively short span. When we extend the time horizon even further, the advantages of homeownership and the remarkable gains homeowners have achieved over the years become even more apparent (see the map below):

Benefits of Homeownership

The second map demonstrates that, on a national scale, home prices have appreciated by an average of over 297% over a span of approximately 30 years.

This nationwide average underscores that the typical homeowner who invested in a property three decades ago witnessed their home’s value nearly triple over that period. This remarkable appreciation in value plays a pivotal role in why numerous homeowners who made their purchases years ago continue to regard their decisions with satisfaction.

While discussions throughout the year may have alluded to an impending crash in home prices, such an event has yet to materialize. In fact, experts anticipate that home prices will continue their upward trajectory for years to come.

Bottom Line

If you’re contemplating whether it’s still wise to embark on the journey of homeownership today, it is crucial to focus on the enduring advantages that accompany this significant milestone. When you are ready to commence your homebuying journey, do not hesitate to reach out for a conversation about your options and the potential benefits that await you.

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