Impact of Home Ownership on Personal Wealth
The analytics of tracking home ownership and its potential to impact on our personal wealth has made tremendous improvement over the recent years. The National Association of Realtors recently undertook a steady to review single family home prices over the last 30 years and the gains they make based on those years. They released the study in February. The study estimates median home price appreciation over the last 30 years based on the length of home ownership.
The trio of charts below do a good job have communicating what they discovered.
How much have home prices increased?
One of the first measures of the financial benefits of home ownership is the net worth (in the form of equity) an owner can build over time. The study showed the average increase in home values based on how long homeowners stayed in a home.
What was the percentage of appreciation?
Another way to look at this is by the percentage increase in value over time, called appreciation:
Was this appreciation consistent throughout the country?
Today, when we think of markets that have done well over the last decade, we have a tendency to think about San Francisco, San Diego, Seattle, and other West Coast cities. Though it is true the West Region showed the highest price growth over the last three decades, we can see how every region of the country did quite well in ten-year increments:
This data validates the claim that home ownership is great for building wealth. The importance of this information was highlighted in the study’s first sentence:
“Home ownership is an important source of wealth creation, enabling current homeowners and succeeding generations to move up the economic ladder.”
Start Your Future Today.
Home ownership has many financial and non-financial benefits. The accumulation of “housing wealth” through increased equity is a major one. If you’re thinking of buying a home for the first time or moving up to your dream home, the sooner you make the move, the sooner your net worth will begin to grow.
Are you interested in talking with Jason or any of our other friendly team about purchasing or selling? You could be very surprised by the current value have your home any equity you have accrued. Why not give your Oly Pen Real Estate Team a call today at 360.249.8187 or stop by our office 141 S. Main Street in friendly Montesano, WA and discuss your expectations today!