Imagine where you want to be in a few years. Are you thinking about your job, money, or reaching important goals? Does owning a home fit into that vision? If it does, you should know that homeownership comes with a bunch of great financial benefits.

Buying a home is a smart move to build wealth and financial stability. Most homes increase in value over time, boosting your net worth. Here's why home values are on the rise, as per 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.”
— Zillow

Owning a home is a great way to build wealth. With home values increasing, now might be a good time to think about becoming a homeowner.

Curious about how owning a home can make a big difference in your life? Let's take a look at the data!

Household Net Worth Is Rising

The data shows that not only the rich saw their net worth increase, but people from all income levels have experienced growth in their wealth over the past few years.

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

Owning a home has a big impact on wealth, as homeowners have significantly higher net worth compared to renters. Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), agrees.

“. . . 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.”
— National Association of Realtors (NAR)

Why do homeowners build equity? It's because home equity is the value of your home minus the mortgage amount you owe. And for most homeowners, it's the biggest factor in their net worth. Check out the graph below from First American for the data.

Homeownership is a big deal when it comes to building wealth. It's actually more important than stocks, gold, and cryptocurrencies. Just take a look at the blue part of each bar - that represents housing as a portion of net worth and it's a major contributor. No matter what your income level is, owning a home does the most to boost the average household's wealth.

Bottom Line

Owning a home is a great way to increase your net worth. Reach out to me and let's start investing in homeownership!