You know, there's this whole idea going around that renting is actually better than buying a home at the moment. But let me tell you, there are still plenty of great reasons why becoming a homeowner is worth considering. One of the big ones is that owning a home is seen as a solid long-term investment that can really boost your net worth as time goes on.

Homeownership Builds Wealth Regardless of Income Level

Did you know that homeowners of all income levels actually have a much higher net worth compared to renters who earn the same amount? The data from First American really paints a clear picture of this (take a look at the graph below).

““Homeownership has long been tied to building wealth—and for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.”
”

— Realtor.com

Owning a home can really boost your wealth, thanks to something called equity. Basically, equity grows as you chip away at your mortgage and as the value of your home goes up over the years. Mark Fleming, the Chief Economist at First American, talked about this in a recent podcast, and he pointed out how renters don't get to enjoy this same advantage.

““Renters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.”
”

— Mark Fleming, Chief Economist at First American

So, before you commit to signing another rental agreement, it might be a good idea to consider whether it would be more beneficial for you to buy a home instead. To help you figure out what would make the most sense for your situation, it's a great idea to chat with a real estate expert you trust. They can guide you through all the advantages that come with owning a home and help you decide if taking that step is the right move for you.

Bottom Line

If you're not sure whether you should keep renting or buy a home, just remember that owning a home, no matter how much money you make, can really help to grow your wealth. Let's connect now so we can get you started on the path to becoming a homeowner.