Homeownership continues to provide many benefits to U.S. households. In addition to obvious benefits of safety and shelter, homeownership offers households an opportunity to accumulate assets and build wealth.
Home is Largest Asset for Many
According to a recent study the National Association of Homebuilders, the primary residence accounted for 62% of homeowners’ total assets. Nationally, the primary residence represents the largest asset category on balance sheets of households.
Larger Net Worth for Owners
According to a study by the Federal Reserve, owning a home has an enormous impact on net worth. Net worth of a homeowner is thirty times greater than that of a renter. In specific terms, the average homeowner has a net worth of $174,500 while the average net worth of a renter is $5,100.
Buy a Home Before 2014
Are you a renter? Now is the time to consider homeownership! Rates continue to hover near historical lows, but are expected to rise in 2014. Home prices are also on the rise. Savvy shoppers can save a lot by of money by purchasing a home before rates and home prices rise much further. Furthermore, by locking in your mortgage payment now for the next 30 years, you are insulating your mortgage payment from inflation.