People still want to own their own homes. In fact, the Census says that the number of people who own their own homes in the U.S. is going up. The graph below shows the homeownership rate over the last year to show how it has gone up:
More than half of the people in the U.S. live in a home they own, and that number is growing over time.
If you're thinking about buying a home this year, here are a few reasons why so many people think it's a good idea.
Why do more and more people buy their own homes?
There are many good things about owning your own home. One important reason is that homeownership can help protect you from rising costs, especially when inflation is high like it is now. Chief Economist at the National Association of Realtors (NAR) Lawrence Yun explains:
"When inflation was around 10% in the 1970s, home prices went up at about the same rate. Inflation makes things harder for renters because rents tend to go up at the same rate as inflation, while fixed-rate mortgage payments stay the same for homeowners.
When you buy a home with a fixed-rate mortgage, you can lock in your housing payment, which is probably your biggest monthly expense, for the life of the loan, which is usually between 15 and 30 years.
That gives you a fixed monthly housing cost, which can help you in the short term. Over time, as the value of your home goes up and you make your monthly mortgage payment, you'll also build equity.
And as your equity grows, your net worth will grow as well. In fact, the most recent NAR data shows that the median net worth of a homeowner's household is about $300,000, while the median net worth of a renter's household is only about $8,000. This means that the net worth of a homeowner is almost 40 times that of a renter.
Bottom Line
The number of homeowners in the U.S. is going up. If you're ready to buy the home of your dreams, let's talk so you can get started right away.