Unpack the Long-Term Benefits of Homeownership

Unpack the Long-Term Benefits of Homeownership

If you want to buy a house soon, you might be wondering if it's still a good idea because mortgage rates are going up, home prices are going up, and people are still worried about being able to afford a house. There's more to think about than just those market factors. When you decide to buy a home, you should also think about the long-term rewards.

You just have to talk to someone who bought a house 5, 10, or even 30 years ago and see what they say. It's likely that they won't say they wish they hadn't bought a home. Why is that? One of the reasons is that home prices go up over time, which means that your wealth also increases. A recent study by Fannie Mae found that 76% of people think buying a home is a safe investment. 

Take a look below and see how the home price appreciation piece can really add up over the years.

Growth in Home Prices Over Time

The Federal Housing Finance Agency (FHFA) data used in the map below illustrates how notable price increases have been during the past five years. Additionally, the map is divided regionally to better illustrate broader market patterns because housing prices differ by area:

When you look at the percent change in home prices over five years, you can see that they rose by an average of just over 57% across the country.

Some areas are a little above or below that average, but home prices have steadily gone up in a short amount of time. The benefits of homeownership and the huge steps forward homeowners have made over the years become even more clear when you look at the picture below over a longer period of time (see map below):

The second map shows that home prices have gone up by an average of over 297% across the country over the past 30 years.

Based on this national average, the normal person who bought a house 30 years ago saw its value almost triple in that time. That's a big reason why so many people who bought their homes years ago are still happy with their choice.

It may have been said several times this year that home prices would crash, but that hasn't happened. Experts think that home prices will keep going up for many years to come. 

In Conclusion

When you're not sure if buying a home now is still a good idea, it's important to think about the benefits that will last for a long time. As soon as you're ready to buy a house, let's talk.