Leave a Message

Thank you for your message. We will be in touch with you shortly.

Growing Your Net Worth with Homeownership

October 12, 2023

Buyer

Growing Your Net Worth with Homeownership

Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.

One of the many reasons to buy a home is that it’s a great way to build wealth and gain financial stability. That’s because the value of most homes increases over time, which in turn grows your net worth. Here’s how home values are rising right now. According to 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.”

Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise across the nation, now might be a good time to consider if owning a home is something you want to reach for.

Here’s a look at some data to see how much owning a home can really make a difference in your life.

Household Net Worth Is Rising

Data shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):

 

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

You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

 “. . . 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.”

The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):

The blue portion of each bar represents housing as a portion of net worth – and it’s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household’s wealth than anything else.

Bottom Line

One of the biggest benefits of owning a home is that it can provide an avenue to grow your net worth. Connect with a local real estate professional so you can start investing in homeownership.

 

(2023, October 12). Growing Your Net Worth with Homeownership. Keeping Current Matters. https://www.keepingcurrentmatters.com/2023/10/12/growing-your-net-worth-with-homeownership/

 

 

Explore Our Other Blogs

Stay Updated On Our Most Recent Blog Posts

Looking for the best real estate agent in San Jose? Get expert tips on how to choose the right local professional for your home buying or selling journey. | Block Change Real Estate

Real Estate

Expert Advice on Choosing the Right Real Estate Agent in San Jose

Brian Ng  |  May 30, 2025

Expert Advice on Choosing the Right Real Estate Agent in San Jose
Stage your Evergreen Hills home like a pro. Get expert tips to attract buyers and sell faster with Block Change Real Estate. | Evergreen Hills Selling Guide

Seller's Real Estate Tips

How to Stage Your Home for a Quick Sale in Evergreen Hills

Thao Dang Pham  |  May 29, 2025

How to Stage Your Home for a Quick Sale in Evergreen Hills
Discover San Jose's housing market forecast through 2030. Gain insights into price trends, neighborhood dynamics, and investment opportunities with Block Change Real Estate.

Real Estate

San Jose Housing Market Forecast: What to Expect Through 2030

Thao Dang Pham  |  May 28, 2025

San Jose Housing Market Forecast: What to Expect Through 2030
Top 5 Mistakes to Avoid Buying in San Jose | Block Change Real Estate

Buyer's Real Estate Tips

The Top 5 Mistakes to Avoid When Buying Property in San Jose

Brian Ng  |  May 27, 2025

The Top 5 Mistakes to Avoid When Buying Property in San Jose
Learn how one family bought their dream home in Evergreen Hills under budget. Get the strategy behind their win. | Block Change Real Estate Evergreen Expert

Buyer's Real Estate Tips

Case Study: How One Family Bought a Home in Evergreen Hills Under Budget

Thao Dang Pham  |  May 26, 2025

Case Study: How One Family Bought a Home in Evergreen Hills Under Budget
Decode real estate terms with our San Jose-specific glossary. Learn key terms like Mello-Roos, Prop 13, and more. | Block Change Real Estate Guide

Real Estate

A Local's Guide to Real Estate Terms in San Jose: What Every Buyer & Seller Should Know

Brian Ng  |  May 23, 2025

A Local's Guide to Real Estate Terms in San Jose: What Every Buyer & Seller Should Know

Let's Talk

You’ve got questions and we can’t wait to answer them.

FOLLOW US ON INSTAGRAM