Each interpretation of the American Dream is unique and personal. But for many, it is associated with a sense of accomplishment, freedom, and prosperity. These are all things homeowners can do.
In a recent Bankrate poll, respondents were asked which achievements they felt best represented the American Dream. The responses show that homeownership is still important to many Americans today (see chart below).
As the graph shows, homeownership ranks higher than other important milestones such as retirement, career success, and earning a college degree.
A recent report by MYND reveals why so many people value home ownership. It finds:
“. . . nearly two-thirds of Americans (65%) see homeownership as a means of building intergenerational wealth.”
That’s because, when you own a home, your equity (and net worth) grows over time as you pay down your home loan and as home prices appreciate. This can be a key factor in building intergenerational wealth and long-term financial stability.
To further drive home the difference homeownership can make in your life, a report from Fannie Mae says:
“Most consumers (87%) believe owning a home is important to ‘live the good life.’ . . . Notably, significantly more see ‘having less stress’ as a benefit achieved by owning than renting.”
Especially today, this could be because, when you own a home with a fixed-rate mortgage, you stabilize what’s likely your largest monthly expense (your housing cost), and that helps combat the impact of rising costs from inflation.
What Does This Mean for You?
While it may feel challenging to buy a home today with higher mortgage rates and home prices, if the time is right for you, know that when you buy a home, incredible benefits are waiting for you at the end of your journey.