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Research - Benefits of Home Ownership

The Benefits of Owning A Home


  • Homeownership is an investment in your future. Owning a home builds wealth over the long term, and it provides significant social benefits.
  • On average, owners who purchased their home 6 years ago have seen the value of their home rise 24.3% during that time, despite recent price declines.
  • In a recent survey, 8 of 10 economists believed home prices will be higher in 5 years than they are today.
  • First time homebuyers can get a $8,000 tax credit for qualified home purchases in 2009.
  • An overwhelming majority of economists surveyed - by a better than 5-to-1 ratio - agreed with the statement, “A person can increase their long-term wealth by purchasing a house rather than renting.”

More Facts

Source: Research by National Assoc of Realtors ( )

  • A Federal Reserve study has shown that the average homeowner’s net worth is 46 times the net worth of the average renter.
  • According to a study by the US Dept of Housing and Urban Development, 60% of the average homeowner’s wealth comes from their home’s equity.
  • During the past 3 decades, home values have increased an average of more than 6.0% per year.
  • On average, the value of a home nearly doubles every 10 years.
  • Selected Features of Social Benefits of Homeownership:

    • Financial gain
    • Stability
    • Health benefits
    • Benefits for children
    • Social Benefits

Housing’s Impact on Wealth Accumulation, Wealth Distribution and Consumer Spending

Homeowners tend to accumulate substantially more wealth than renters. Estimates suggest that a typical renter household in 1984 had accumulated $42,000 in net wealth by 1999, but a typical owner household in 1984 had accumulated $167,000 over the same period.

Source: Housing’s Impact on Wealth Accumulation, Wealth Distribution and Consumer Spending, By Eric Belsky, Joint Center for Housing Studies of Harvard University & Joel Prakken, Macroeconomic Advisers, LLC. This report was commissioned and supported by the National Association of REALTORS® National Center for Real Estate Research, © 2004 National Association of REALTORS®.

Social Benefits of Home Ownership and Stable Housing

Source: National Association of Realtors® Research Division, January 2006

Homeownership allows households to accumulate wealth and social status, and is the basis for a number of positive social, economic, family and civic outcomes. Nearly 70% of all US households who own their own home currently are enjoying these benefits.

  • The proportion of people living in homes they own increases with income.
  • Homeownership brings many financial benefits. One of the surest paths to wealth accumulation, particularly among low- and moderate-income households, has been through increased home values.
  • Homeowners are happier and healthier than non-owners. Homeowners have the option of tapping into housing equity in case of health emergencies. Homeowners had a higher level of care and were in better health due to the ability to pay for medical bills by tapping into home equity.
  • Daughters of homeowners have a much lower incidence of teenage pregnancy.
  • There is compelling evidence of the benefits accruing to families, communities, and society as a whole. Stable housing boosts the educational performance of children, induces higher participation in civic and volunteering activity, improves health care outcomes, lowers crime rates and lessens welfare dependency.
  • Homeowners participate in elections much more frequently than renters and there is a higher incidence of membership in voluntary organizations and church attendance among homeowners.
  • Homeowners tend to spend more time and money maintaining their residence, which contributes to the overall quality of the surrounding community.