Despite the Current Economy, Most Americans View Homeownership as the American Dream

Despite the Current Economy, Most Americans View Homeownership as the American Dream

Homeownership is a strong choice for the American Dream in the United States and it stays a critical piece of the Pursuit of happiness. Truth be told, the 2022 Consumer Insights Report from Mynd found most of the individuals surveyed still view homeownership as a key life accomplishment. Let's investigate the benefits of homeownership.

The Financial Benefits of Owning a Home

Owning a home is one of the most powerful means of building your wealth and can be viewed as the single largest contributor to wealth-building in nearly 75% of the population. Owning a home also provides more financial stability because your monthly payment is typically locked over the course of the mortgage.

An article from Forbes explains:

"Understanding the potential benefits of homeownership helps individuals see the value of owning property instead of renting . . . household wealth among homeowners is a whopping 1,469% higher on average compared to renters, excluding home equity, making the allure of homeownership even more enticing."

Homeownership is not only the single best tool to improve your net worth, but it will also benefit you by passing your wealth to future generations.  Mynd reported that "Most Americans (78%) still associate homeownership with the American Dream. And nearly two-thirds of Americans (65%) see homeownership as a means of building intergenerational wealth."

Owning a home will also help you financially because homeowners typically save on other expenses like insurance and recurring debt.

I talk with insurance agents on a weekly basis on behalf of clients and most tell me that they save their clients substantially on insurance premiums when their clients go from renting to owning a home. Kristy Mochel from 180 Insurance recently saved a client $1,833. A homeowner that I helped sell his home last year moved into an apartment while he was building a home. He said that his insurance went up on his vehicles by a little over 28% per year.

In addition to saving on insurance homeowners will benefit from lower interest rates. Homeowners typically have higher credit scores due to their on-time mortgage payments. This benefits homeowners by being offered lower interest rates on credit cards and other loans. Owning a home can help lower your interest rate on debt.

Owning a home typically will increase your net worth, help in financial stability, lower your insurance premiums and lower your interest rates on debt. 

The Non-Financial Benefits of Homeownership

As Mark Fleming, Chief Economist for First American says: "Buying a home is not just a financial decision. It's also a lifestyle decision." 

There are also non-financial benefits of owning a home:
1) Providing you more control over the space you live in. You paint the walls and make improvements without contracting the landlord.
2) Providing you with a sense of pride and more part of the community.
3) Homeownership will help in community engagement.
4) Owning a home will help with housing stability.
5) Making lifestyle changes is decided by you when you want and not according to the terms of a lease.

In Conclusion, what does this all mean for YOU?

If your idea of the American Dream is greater freedom and financial prosperity, then owning a home may be the first step. Although you may feel that the current mortgage rates and home values may feel like a challenge, a real estate consultant will help you reach the American Dream.

Need help? Let's talk . . .

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