Experts and research show that Homeownership is one of the best ways to build your families net worth. Experts say that Recent data from the Federal Reserve shows that the net worth of a homeowner is actually over 40 times greater than that of a home renter. If your renting you should start thinking about buying a home especially when they're so affordable in today's market. Rates being at all time lows are keeping the homes affordable.
The Survey of Consumer Finances done every three years, shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while looking at the net worth of renters tends to hold steady and be significantly lower than that of homeowners net worth. The gap between owning a home in Arizona and renting a home in Arizona just keeps getting wider over time, making homeownership more and more desirable for those who are ready.
Owning a home is a great way to build family net worth and wealth.
For many Arizona homeowners, homeownership creates a form of ‘forced savings.’ Every time a homeowner pays the mortgage, they are contributing to their net worth by increasing the equity the homeowner has in the home (See chart below):
Experts agree that the impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s 2020 survey, 35% of Americans chose real estate and homeownership over stocks, savings accounts, bonds, and gold investments.
2020 buyers have a great opportunity with real estate investing. All Time low interest rates are giving homeowners that refinance and homebuyers a big boost in purchasing power. Leading the way in the housing market's full recovery. experts believe buying a home can set you up to increase your net worth and create a safety net for your families future.