1. Community Buy-In
Homeowners have a much greater financial stake in their neighborhoods than renters, leading to a stronger sense of community and stability. NAR’s Social Benefits of Homeownership and Stable Housing study also found homeowners are happier and healthier, participate in more organized community activities. tend to vote more, volunteer more, and contribute more to their neighborhoods.
Owning a home means owning part of a neighborhood. The study found, overall, attachment to the neighborhood is stronger for homeowners and long-term renters than for more transient residents.
2. Increased Stability
Homeownership provides social and financial stability. Renters are significantly more likely to change residence in a given year than homeowners*. Homeowners tend to set down roots in their communities, contributing to the betterment of their neighborhoods as a whole. Furthermore, homeowners on a fixed-rate mortgage can expect to pay the same rate for housing year-over-year, avoiding the stress of increasing rental rates and uncertainty over the future availability of their home.
3. Quality of Life
A stable neighborhood, independent of ownership structure, is also likely to reduce crime*. It is easier to recognize a perpetrator of crime in a stable neighborhood with extensive social ties and empirical studies show a lower crime rate among homeowners and people living in a stable housing environment.
4. Build Long-term Wealth
A 2019 U.S. Census Bureau study found the two largest contributors to household wealth are home equity and retirement accounts – accounting for 62.9% of household net worth in 2015. Homeowners’ median net worth is 80 times larger than renters’ median net worth. Over time home values often increase, growing the owner’s wealth over time. Once the home is paid off, it becomes a valuable asset that can be passed down through the generations.
5. Create a Unique Space
From paint color to major renovations, when you own your own home you can create a space that is unique to you. The average person spends the majority of their time indoors, so while this may not be the most important benefit of homeownership, it can definitely impact how much you enjoy your time at home. Plus – many renovations and upgrades can increase a home’s value over time.
Sources:
National Association of Realtors® Social Benefits of Homeownership and Stable Housing 2016 https://cdn.nar.realtor/sites/default/files/documents/Homeownership-Stable-Housing2016.pdf
U.S. Census Bureau Many U.S. Households Do Not Have biggest Contributors to Wealth 2019
https://www.census.gov/library/stories/2019/08/gaps-in-wealth-americans-by-household-type.html