We’ve said before that homeowning is a way to build wealth. We’ve said before that now is a good time to buy at low home prices and with low mortgage rates – if you are willing to stay put for a bit. Homeownership has always been a long term investment and a way to build wealth.
So how has the wealth of current homeowners changed as a result of home ownership? The National Association of Realtors created a snapshot of the equity that individuals who purchased a home at the median price 5, 10, 15, and 20 years ago would have built up if they had kept that home through 2010.
There are three reports on Wisconsin cities where First Weber has real estate offices. See links below.
You’ll find the most valuable data on pages 5-7 of the NAR reports.
Page 5 of each report compares the typical net worth of renters vs Homeowners.
Homeowner net worth ranges from 31% to 46% higher than renters. Homeownership is a way to build wealth over the long term. Homeownership also has many other benefits that have nothing at all to do with money. The equity build-up is just a silver lining.
Page 6 of each report shows the home price trend in each area since 1990.
All show steady rises until the slight dip we’re in right now.
Page 7 of each report shows the estimated equity that homeowners buying a median priced home would have acquired, based on when they bought.
Though only 3 cities are looked at out of the many in Wisconsin, the charts above illustrate well that buying real estate as a long term investment builds wealth. Plus, homeownership matters in ways more important ways than money. Consider both sides when buying a home.
As you begin your Wisconsin home search, we’d love to have your favorite Wisconsin real estate website be firstweber.com. Please feel free to set up a free MyFirstWeber account to save properties, get notified of price reductions and new listings. Search firstweber.com for an agent or an office in your area. And thank you for reading the First Weber Wisconsin real estate & Wisconsin living blog.