Experts Agree: Homeownership Provides a Path to Long-Term Wealth

by Nima Sherpa

 

Experts Agree: Homeownership Provides a Path to Long-Term Wealth Experts Agree:

Homeownership Provides a Path to Long-Term Wealth | MyKCM A recent survey from LendingTree.com found there are multiple reasons why Americans would choose to purchase a home instead of renting.

Some of the most popular non-financial reasons given include: The flexibility to make the space your own The pride homeownership offers The sense of stability In the same survey, 41% of respondents say they’d rather own a home than rent because of the unique way homeownership builds wealth over time. And experts agree – the home you own is an important tool for building your net worth.

Here’s what many of those experts have to say about building long-term financial stability through homeownership. According to the National Association of Realtors (NAR): “Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258, . . .” Mark Fleming, Chief Economist at First American, points out that a home is truly a one-of-a-kind asset. It’s the only asset that’s both an investment and a place for you to call your own. “The major financial advantage of homeownership is the accumulation of equity in the form of house price appreciation. . . . We won’t always have 17% house price appreciation, but we have to take into account the fact that the shelter that you're owning is an equity-generating or wealth-generating asset.” Homeowners can leverage the wealth they generate in several ways throughout their life. Tapping into accumulated equity has long been used to pay for the cost of an education, to start a business, or to fund various other expenses.

The Joint Center of Housing Studies at Harvard points out: “. . . by paying down mortgage principal each month and participating in the long-term appreciation of home values, a family can build wealth that can be used for retirement or other needs, including helping the next generation.” Bottom Line With home prices expected to continue to appreciate in coming years, homebuyers have an opportunity to start the long-term wealth-building process right now. Let’s connect today if you’re ready to begin your journey on the path to becoming a homeowner.

Categories

Recent Posts

Columbia vs Lexington SC: Where Should You Buy?
Columbia vs Lexington SC: Where Should You Buy?
How to Prepare Your Midlands SC Home for Sale: A Seller’s Guide
How to Prepare Your Midlands SC Home for Sale: A Seller’s Guide
Living Near Lake Murray, SC: Homes, Communities & Buying Guide
Living Near Lake Murray, SC: Homes, Communities & Buying Guide
The Complete Home Buying Guide for the Midlands of South Carolina
The Complete Home Buying Guide for the Midlands of South Carolina
The Price on the Listing Isn't the Price of the Home: A Columbia, SC Buyer's Guide to the True Cost of Buying
The Price on the Listing Isn't the Price of the Home: A Columbia, SC Buyer's Guide to the True Cost of Buying
House Hunting Is Fun… Until Someone Else Falls in Love with the Same Home
House Hunting Is Fun… Until Someone Else Falls in Love with the Same Home
Multiple Offers Are Exciting... Until You Have to Choose One
Multiple Offers Are Exciting... Until You Have to Choose One
More Choices, Less Pressure: Why Summer 2026 Could Be Your Best Time to Buy a Home
More Choices, Less Pressure: Why Summer 2026 Could Be Your Best Time to Buy a Home
From “I Think I Qualify” to “Let’s Write the Offer”: What It Really Takes to Get Pre-Approved
From “I Think I Qualify” to “Let’s Write the Offer”: What It Really Takes to Get Pre-Approved
Highest Offer or Best Offer? How Smart Sellers in Columbia Actually Choose
Highest Offer or Best Offer? How Smart Sellers in Columbia Actually Choose

Share on Social Media

Nima Sherpa

+1(803) 931-2126

nimalistings@gmail.com

4921 Broad River Rd, Columbia, SC 29212, United States

GET MORE INFORMATION

Name
Phone*
Message

By checking this box, I agree by electronic signature to the Electronic Disclosure Consent Agreement; to receive recurring marketing communication from Real Broker,LLC, including auto-dialed calls, texts, and artificial/prerecorded voice messages (message frequency varies; data rates may apply; reply "STOP" to opt-out of texts or "HELP" for assistance); and to the Terms of Service and Privacy Policy of this website. Consent not required to make a purchase. I understand that I can call to obtain direct assistance.