7 Reasons to Own a Home
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Historically, real estate has had a long-term, stable growth in value. Median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 10 years — which included quite a few very bad years for housing — values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. households is expected to rise 10 to 15 percent over the next decade, creating continued high demand for housing.
Here are the seven reasons why owning a home remains one of the smartest decisions you can make.
7 Reasons to Own a Home
Historically, real estate has had a long-term, stable growth in value. Median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. Even in the most difficult 10-year stretch for housing, values were still up 7.0 percent on a cumulative basis.
With the number of U.S. households expected to rise 10 to 15 percent over the next decade, the demand for housing — and the long-term value of owning — remains as strong as ever.
Money paid for rent is money you'll never see again. But mortgage payments let you build equity — an ownership interest in your home that grows with every payment you make. That equity is yours to keep, borrow against, or cash out when you sell.
Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax. That's a powerful wealth-building advantage renters simply don't have access to.
Unlike rent, your fixed-rate mortgage payments don't rise over the years — so your housing costs may actually decline in real terms the longer you own. Keep in mind that property taxes and insurance costs will likely increase, but the core of your payment stays locked in from day one.
The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle — without asking anyone's permission. No landlord rules. No lease restrictions. Just your space, your way.
Owning a home gives you and your family a stable foundation — no unexpected evictions, no surprise rent hikes, no uncertainty at lease renewal. That sense of permanence and security is something a rental address simply cannot provide.
Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity — a stable school environment, lasting friendships, and real roots in a place they can call home.
Average annual home price appreciation since 1972
Cumulative home value gain even in the worst 10-year stretch
Tax-free gain on sale for a married couple
Expected rise in U.S. households over the next decade