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.

315 Properties
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$776,592
Neighborhood: Cassata Lakes Ph I
3
Beds
3
Baths
2,195
Sq.Ft.
2024
Year Built
2
Days on Site
R4908007
MLS
$793,950
Neighborhood: Cassata Lakes Ph I
3
Beds
2F11/2
Baths
2,336
Sq.Ft.
2024
Year Built
2
Days on Site
R4908010
MLS
$799,780
Neighborhood: Cassata Lakes Ph I
3
Beds
2F11/2
Baths
2,336
Sq.Ft.
2024
Year Built
2
Days on Site
R4908011
MLS
$250,000
Neighborhood: Venice By-Way
2
Beds
1
Baths
545
Sq.Ft.
1942
Year Built
3
Days on Site
N6133382
MLS
$700,000
Neighborhood: Venice Woodlands Ph 1
4
Beds
3F11/2
Baths
3,003
Sq.Ft.
2021
Year Built
3
Days on Site
N6133290
MLS
$508,000
Neighborhood: Toscana Isles Ph 6 Un 2
2
Beds
2
Baths
1,670
Sq.Ft.
2022
Year Built
3
Days on Site
A4613211
MLS
$879,000
Neighborhood: Calusa Lakes
3
Beds
2F11/2
Baths
2,760
Sq.Ft.
2001
Year Built
3
Days on Site
N6129195
MLS
Open 6/16
5640 Blue Reef PLACE Nokomis,  FL 34275
$824,900
Neighborhood: Palmero
4
Beds
3
Baths
2,410
Sq.Ft.
2023
Year Built
3
Days on Site
A4613235
MLS
$685,000
Neighborhood: Inlets Sec 06
3
Beds
2
Baths
1,532
Sq.Ft.
1988
Year Built
3
Days on Site
A4613693
MLS
Open 6/15
204 Monet Dr Nokomis,  FL 34275
$495,000
Neighborhood: Sorrento East
2
Beds
2
Baths
1,784
Sq.Ft.
1973
Year Built
3
Days on Site
A4612053
MLS
$199,999
Neighborhood: Terra Cove
2
Beds
2
Baths
1,151
Sq.Ft.
1978
Year Built
3
Days on Site
T3534371
MLS
$515,000
Neighborhood: Sorrento East
3
Beds
2
Baths
2,008
Sq.Ft.
1978
Year Built
3
Days on Site
A4613961
MLS

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