Homeownership Is Still at the Heart of the American Dream

<article class="post-908679 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-908679"><span class="entry-date">January 15, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Homeownership Is Still at the Heart of the American Dream</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Homeownership+Is+Still+at+the+Heart+of+the+American+Dream&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhomeownership-is-still-at-the-heart-of-the-american-dream%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Homeownership Is Still at the Heart of the American Dream Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/Header-Image-pg-18.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p><span style="color: black;">Buying a home is a powerful decision, and it remains at the heart of the American Dream. Unlike renting, owning a home means more than just having a place to live – it offers a sense of belonging, stability, and freedom. </span><a href="https://www.cnbc.com/2023/12/15/heres-what-to-expect-in-2024-if-you-want-to-buy-a-home.html#:~:text=%E2%80%9CThe%20American%20Dream%20is%20still,in%20America%2C%E2%80%9D%20said%20Lautz." rel="noopener noreferrer" target="_blank">According</a><span style="color: black;"> to Nicole Bachaud, Senior Economist at </span><em style="color: black;">Zillow</em><span style="color: black;">:</span></p>
<blockquote><p><em style="color: black;">“</em><strong style="color: black;"><em>The American Dream is still owning a home</em></strong><em style="color: black;">. There’s a lot of pent-up demand for ownership; that isn’t going to go away.”</em></p></blockquote>
<p><span style="color: black;">Let’s explore just a few of the reasons why so many Americans continue to value homeownership. </span></p>
<h4><strong>The Financial Benefits of Owning a Home</strong></h4>
<p>One possible reason homeownership is viewed so highly is because owning a home is a significant <a href="https://www.simplifyingthemarket.com/2023/11/07/homeowner-net-worth-has-skyrocketed/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">wealth-building</a> tool. That may be why Jessica Lautz, Deputy Chief and VP of Research at the <em>National Association of Realtors</em> (NAR), <a href="https://www.cnbc.com/2023/12/15/heres-what-to-expect-in-2024-if-you-want-to-buy-a-home.html#:~:text=Indeed%2C%20%E2%80%9Chomeownership%20is%20the%20number,American%20dream%20of%20financial%20stability." rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><strong><em>“Homeownership is the number one way to build wealth in America.”</em></strong></p></blockquote>
<p><span style="color: black;">Over time, owning a home not only helps boost your own </span><a href="https://www.simplifyingthemarket.com/2023/10/12/growing-your-net-worth-with-homeownership/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">net worth</a><span style="color: black;">, but it also sets future generations up for success as you pass that wealth down. </span><em style="color: black;">Habitat for Humanity</em><span style="color: black;"> </span><a href="https://www.habitat.org/sites/default/files/Evidence-Brief_Wealth-building-for-homeowners.pdf" rel="noopener noreferrer" target="_blank">explains</a><span style="color: black;">: </span></p>
<blockquote><p><em>“Overall, homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Homeowners make monthly payments that increase their equity in their homes by paying down the principal balance of their mortgage. . . . In addition, owning a home promotes intergenerational homeownership and wealth building. Children of homeowners transition to homeownership earlier — lengthening the period over which they can accumulate wealth . . .”</em></p></blockquote>
<p>It can also provide meaningful <a href="https://www.simplifyingthemarket.com/2023/10/25/invest-in-yourself-by-owning-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">financial stability</a> compared to renting. When you buy with a fixed-rate mortgage, you can lock in your monthly housing payments for the length of your home loan.</p>
<h4><strong>The Non-Financial Benefits of Homeownership</strong></h4>
<p>But, owning a home offers more than just <a href="https://www.simplifyingthemarket.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">financial benefits</a>—it benefits you socially and <a href="https://www.simplifyingthemarket.com/2023/11/23/why-homeowners-are-thankful-they-own/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">emotionally</a> too. Your <a href="https://www.simplifyingthemarket.com/2023/12/25/these-non-financial-benefits-turn-a-house-into-a-happy-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home</a> provides feelings of achievement, responsibility, and more. In a recent survey, <em>Fannie Mae</em> <a href="https://www.fanniemae.com/research-and-insights/perspectives/consumers-homeownership-aspirations-remain-high-despite-higher-home-prices-and-interest-rates" rel="noopener noreferrer" target="_blank">outlines</a> just a few of these more emotionally-driven benefits, including:</p>
<blockquote><p><em>“The top three were having control over what you do with your living space (94%) to having a sense of privacy and security (91%) and having a good place for your family or to raise your children (90%) . . .”</em></p></blockquote>
<h4><strong>What Does That Mean for You?</strong></h4>
<p>If your idea of the <a href="https://www.simplifyingthemarket.com/2023/11/30/is-owning-a-home-still-the-american-dream-for-younger-buyers/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">American Dream</a> involves greater freedom, security, and prosperity, homeownership could be a key player in bringing that dream to life. And with <a href="https://www.simplifyingthemarket.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a> now on a downward trend, it might be a good time for you to consider making a move.</p>
<p>If you’re ready and able to buy, know that there are incredible benefits waiting at the end of your journey. You’ll gain more than just a home – it’s a place to grow your wealth and call your very own. Like Ksenia Potapov, Economist at <em>First American</em> <a href="https://blog.firstam.com/economics/building-wealth-brick-by-brick" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“…homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”</em></p></blockquote>
<h3>Bottom Line</h3>
<p>Buying a home is a powerful decision and the cornerstone of the American Dream. If finding a place to call your own is part of your <a href="https://www.simplifyingthemarket.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">dream</a> for this year, connect with a local real estate advisor to start the process today.</p>
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