We celebrate National Homeownership Month every June. Here are 5 reasons why:
1. Stabilized payments. One of the benefits of homeownership is the peace of mind that comes from knowing how much you need to pay each month. A typical 15 or 30-year mortgage loan offers stabilized payments along with an ability to plan for other things in life, like college tuition, a new car, home improvements, or retirement. Renters have more uncertainty. Rents nationwide have increased by 11.3% over the previous year1 and moving costs are on the rise. People are paying about 15% more to move and, according to Forbes ADVISOR, it is due to “Everything from [the cost of] packing supplies to trucks increased. That, mixed with seasonality, has resulted in a significant ongoing shortage of availability for moving companies.”2
2. Tax benefits. Depending upon your situation, real estate property taxes, interest, and origination fees may be deductible on your income taxes.* One of the most significant financial benefits of homeownership is the protection it can offer during periods of inflation.
3. Making a home your own. Spending time with your friends and family, meeting neighbors, and being active in your local community through school or volunteering helps to make a home your very own. Psychology Today article, “Should You Buy or Rent Your Home?”3 adds, “There’s pride in owning rather than renting. There’s the good feeling of being able to fully-customize your home to meet your needs and desires: tear out a wall, remodel the kitchen, paint the house in your favorite color scheme, or create the backyard you’ve always wanted.”
John Tarducci, Senior Vice President with William Raveis New Development Services comments, “Staying in one place gives owners a sense of connection. It can also help communities grow their local economy.” The Bureau of Labor Statistics in conjunction with the National Association of Homebuilders reports that recent homebuyers will spend about 92% more on home alterations.4
4. Health and wellbeing. Studies link the positive benefits of homeownership on people’s overall health and wellbeing. According to the Center on Budget and Policy Priorities, “When households struggle to pay the rent, they not only face financing and housing instability, but are also at heightened risk for a host of negative health outcomes.”5
5. Building equity. Building equity in your home is considered as one of the main benefits of homeownership. It is true. When you make payments against a mortgage balance, or add potential market value with home improvements, such as, installing new landscaping, a new roof, remodeling a kitchen or updating baths, you may be building equity. However, there is no crystal ball for real estate investments. It is always a good idea to discuss your long-term goals with experts who can evaluate your situation and help weigh your options before buying, selling, or renting a home.
*We suggest you consult with your accountant or financial advisor and cannot guarantee these results.
1Abha Bhattarai, Chris Alcantara and Andrew Van Dam, “Rents are rising everywhere. See how much prices are up in your area” The Washington Post, CoStar Group data, April 21, 2022.
2Samantha Allen, Editor, “Yes, You’re Paying About 15% More to Move This Year. Here’s Why” Forbes ADVISOR, Feb. 8, 2022.
3Marty Nemko, Ph.D., “Should You Buy or Rent Your Home: Questions to Consider” Psychology Today, February 3, 2021.
4Natalia Siniavskaia, “How a Home Purchase Boosts Consumer Spending”, Eye on Housing: National Association of Home Builders, June 6, 2022.
5Peggy Bailey, “Housing and Health Partners Can Work Together to Close the Housing Affordability Gap”, Center on Budget and Policy Priorities, January 17, 2020.