Building Wealth and Stability: Why Homeownership Comes Out on Top in the Long Term

Today’s higher mortgage ratesinflationary pressures, and concerns about a potential recession have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges for homebuyers, it’s important to think about the long-term benefits of homeownership when making your decision.

Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how home values grow with time and how, by extension, that grows your own wealth. That may be why, in a recent Fannie Mae survey, 70% of respondents say they believe buying a home is a safe investment.

Here’s a look at how just the home price appreciation piece can really add up over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy price gains have been over the last five years. And, since home prices vary by area, the map is broken out regionally to help convey larger market trends.

The second map shows, nationwide, home prices appreciated by an average of over 290% over a roughly 30-year span.

 This nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. That’s a key factor in why so many homeowners who bought their homes years ago are still happy with their decision.

And while you may have heard talk in late 2022 that home prices would crash, it didn’t happen. Even though home prices have moderated from the record peak we saw during the ‘unicorn’ years, prices are already rebounding in many areas today. That means, in most markets, your home should grow in value over the next year.

The alternative to buying a home is renting, and rental prices have been climbing for decades. So why rent and deal with annual lease hikes for no long-term financial benefit? Instead, consider buying a home.

Bottom Line

If you’re questioning if it still makes sense to buy a home today, remember the incredible long-term benefits of homeownership. If you’re ready to start the conversation, let’s connect today.

325 Properties
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Open 2/25
651 Resolute Ln Nokomis,  FL 34275
$539,000
Neighborhood: Calusa Park
3
Beds
2
Baths
1,806
Sq.Ft.
2016
Year Built
1
Day on Site
A4597586
MLS
$11,795,000
Neighborhood: Casey Key
5
Beds
6F11/2
Baths
6,596
Sq.Ft.
2008
Year Built
1
Day on Site
A4600753
MLS
Open 2/25
1106 Hoover St Nokomis,  FL 34275
$649,000
Neighborhood: Laurel Woodlands
3
Beds
2
Baths
1,991
Sq.Ft.
1987
Year Built
1
Day on Site
N6130575
MLS
Open 2/24
257 Calmar WAY Nokomis,  FL 34275
$527,000
Neighborhood: Toscana Isles Ph 4 Un1-2
2
Beds
2
Baths
1,832
Sq.Ft.
2020
Year Built
2
Days on Site
N6131300
MLS
Open 2/25
474 Bellini CIRCLE Nokomis,  FL 34275
$1,200,000
Neighborhood: Sorrento South
2
Beds
2
Baths
1,794
Sq.Ft.
1966
Year Built
2
Days on Site
N6131387
MLS
$169,900
Neighborhood: Kings Gate Sec I
1
Beds
2
Baths
778
Sq.Ft.
1989
Year Built
2
Days on Site
A4598558
MLS
$540,000
Neighborhood: Calusa Lakes
3
Beds
2
Baths
2,362
Sq.Ft.
1997
Year Built
2
Days on Site
N6131425
MLS
$427,900
Neighborhood: Sorrento Villas 6
3
Beds
2
Baths
1,850
Sq.Ft.
1992
Year Built
2
Days on Site
N6131418
MLS
Open 2/25
2123 Calusa Lakes Blvd Nokomis,  FL 34275
$1,495,000
Neighborhood: Calusa Lakes
4
Beds
4
Baths
4,255
Sq.Ft.
2000
Year Built
3
Days on Site
A4600209
MLS
$670,000
Neighborhood: Laurel Woodlands
3
Beds
2
Baths
1,844
Sq.Ft.
1987
Year Built
3
Days on Site
A4600415
MLS
$225,000
Neighborhood: Gulf Harbor Marina
33,300
Sq.Ft. Lot
3
Days on Site
D6135180
MLS
3
Beds
2F11/2
Baths
1,373
Sq.Ft.
2024
Year Built
3
Days on Site
A4600642
MLS

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