Why Owning a Home Is Worth It in the Long Run

Why Owning a Home Is Worth It in the Long Run

Today’s mortgage rates and home prices might have you questioning if now is the right time to buy a home. While market conditions are certainly important, it’s also essential to consider the bigger picture: the long-term benefits of homeownership.

Think about it this way—if you know someone who bought a home 5, 10, or even 30 years ago, chances are they don’t regret their decision. That’s because home values tend to increase over time, which in turn helps grow a homeowner’s net worth. Here’s a closer look at how that growth can add up over the years.

Home Price Growth over Time

The map below, based on data from the Federal Housing Finance Agency (FHFA), illustrates how much home prices have appreciated over the past five years. Since home prices differ across regions, the map is divided regionally to highlight broader market trends.

Nationally, home prices have risen by over 57% in just five years.

While some regions are slightly above or below that average, the overall trend shows significant growth in a short time. Looking at an even broader timeline, the advantages of homeownership—and the substantial equity gains homeowners have achieved—become even more evident (see map below):

The second map reveals that over the past 30 years, home prices have appreciated by an average of more than 320% nationally.

This means that a typical homeowner who purchased a home about three decades ago likely saw their property’s value triple during that period. That’s a key reason why so many long-time homeowners remain satisfied with their decision to buy.

Bottom Line

Today’s market may be challenging, but if you’re ready and able to buy, let’s connect to discuss how we can make your move a reality. This will allow you to start benefiting from the long-term advantages of homeownership, such as building wealth through rising home values.