Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.
One of the many reasons to buy a home in the Roaring Fork Valley is that it’s a great way to build wealth and gain financial stability. That’s because the value of most homes increases over time, which in turn grows your net worth. Here’s how home values in the Roaring Fork Valley are rising right now. According to Zillow:
“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”
Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise across the nation, now might be a good time to consider if owning a home is something you want to reach for.
Here’s a look at some data to see how much owning a home can really make a difference in your life.
Data shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):
For many of those people, the rising value of their home plays a big part in that.
You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):
The blue portion of each bar represents housing as a portion of net worth – and it’s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household’s wealth than anything else.
One of the biggest benefits of owning a home in the Roaring Fork Valley is that it can provide an avenue to grow your net worth. Connect with Jordie Karlinski, so you can start investing in homeownership.
STAY UP TO DATE ON THE LATEST REAL ESTATE TRENDS
Jordie Karlinski | November 6, 2023
Jordie Karlinski | October 30, 2023
Jordie Karlinski | October 27, 2023
Jordie Karlinski | October 25, 2023
Jordie Karlinski | October 23, 2023
Jordie Karlinski | October 18, 2023
Jordie Karlinski | October 16, 2023
Jordie Karlinski | October 13, 2023
Jordie Karlinski | October 11, 2023
Jordie is driven, grounded, committed to her work, and passionate about the long-term success of her community. Through her experiences as a professional athlete, she learned discipline, persistence, planning, and attention to detail.