Growing Your Net Worth with Homeownership
Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.
One of the many reasons to buy a home is that it’s a great way to build wealth and gain financial stability. That’s because the value of most homes increases over time, which in turn grows your net worth. Here’s how home values are rising right now. According to Zillow:
“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”
Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise across the nation, now might be a good time to consider if owning a home is something you want to reach for.
Here’s a look at some data to see how much owning a home can really make a difference in your life.
Household Net Worth Is Rising
Data shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):
For many of those people, the rising value of their home plays a big part in that.
Owning a Home Helps You Achieve Financial Success
You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):
The blue portion of each bar represents housing as a portion of net worth – and it’s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household’s wealth than anything else.
In conclusion, the path to growing your net worth through homeownership is a journey worth embarking upon. If you're considering the enchanting Telluride area as your next destination for real estate investment, Mountain Rose Realty is your trusted partner for all things Telluride Real Estate. With their unparalleled expertise and a deep understanding of the local market, you can count on Anne-Britt Ostlund and her team to guide you through the intricacies of Telluride real estate.
Explore Telluride homes for sale and discover the endless opportunities that await in this breathtaking Colorado town. With homes for sale in Telluride, CO, becoming a homeowner in this remarkable region is not just a dream; it's a tangible reality.
To take the first step towards building your net worth and securing your own piece of Telluride paradise, reach out to Anne-Britt Ostlund and her dedicated team at Mountain Rose Realty. Their local expertise and commitment to your real estate goals make them the perfect partner for your journey into homeownership.
Don't miss out on the chance to invest in Telluride real estate. Contact Mountain Rose Realty today and make your dream of owning a home in Telluride, CO a reality. Your financial future begins with the right real estate investment, and Mountain Rose Realty is here to ensure your success. Start your journey today!