Top two benefits of owning a home

Homeownership benefits

There are two common but notable reasons why Americans prefer owning their home instead of renting: The opportunity to build equity and offer stability.

Opportunity To Build Equity

One of the most important reasons why you should own your home instead of renting is the chance to build equity.  Each month as a homeowner, your housing payments go toward purchasing your home rather than renting it; making your wealth and assets instead of someone else’s.

Typically,  Homeowners have a higher net worth than the net worth of those that rent their home. Why is this?

The answer is simple.

Housing is a forced savings account. The equity you build by paying your mortgage allows you to build your wealth.

Family Stability

In addition to substantial financial benefits, homeownership produces significant social benefits for families.

Homeownership and stable housing go hand-in-hand. A home is the most significant financial investment most American families will ever make and allows families to build economic security as the equity in the home increases. Because of this,  Homeowners move far less frequently than renters and therefore remain in the same neighborhood and community for a more extended period. 

Homeownership has many advantages—both financial and personal. Owning a home represents the hope of most American households, achieving the so-called “American Dream.”