{"id":3451,"date":"2021-03-16T05:00:48","date_gmt":"2021-03-16T10:00:48","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/what-is-the-1-financial-benefit-of-homeownership\/"},"modified":"2021-03-16T05:00:48","modified_gmt":"2021-03-16T10:00:48","slug":"what-is-the-1-financial-benefit-of-homeownership","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/what-is-the-1-financial-benefit-of-homeownership\/","title":{"rendered":"What Is the #1 Financial Benefit of Homeownership?"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/03\/15121435\/20210316-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"What Is the #1 Financial Benefit of Homeownership? | Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>There are many financial and non-financial benefits of homeownership, and the greatest financial one is <strong>wealth creation<\/strong>. Homeownership has always been the first rung on the ladder that leads to forming household wealth. As <em>Freddie Mac<\/em> <a href=\"https:\/\/myhome.freddiemac.com\/owning\/equity-and-appreciation.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">explains<\/a>:<span id=\"more-44024\"><\/span><\/p>\n<blockquote>\n<p><em>\u201cHomeownership has cemented its role as part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This \u2018wealth\u2019 is built, in large part, through the creation of equity\u2026Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Odeta Kushi, <em>Deputy Chief Economist<\/em> at <em>First American<\/em>, also <a href=\"https:\/\/blog.firstam.com\/economics\/homeownership-remains-strongly-linked-to-wealth-building\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">notes<\/a>:<\/p>\n<blockquote>\n<p><em>&#8220;The wealth-building power of homeownership shows that home is not only where your heart is, but also where your wealth is\u2026For the majority of households that transition into homeownership, the most recent data reinforces that housing is one of the biggest positive drivers of wealth creation.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Last week, <em>CoreLogic<\/em> released their latest <a href=\"https:\/\/www.corelogic.com\/insights-download\/homeowner-equity-report.aspx\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Homeowner Equity Insights Report<\/a>, which reveals the surge in wealth created over the last twelve months through increased home equity. The report makes five key points:<\/p>\n<ol>\n<li>Roughly <strong>38%<\/strong> of all homes are mortgage-free<\/li>\n<li>The average equity gain of mortgaged homes in the last year was <strong>$26,300<\/strong><\/li>\n<li>The current average equity of mortgaged homes is greater than <strong>$200,000<\/strong><\/li>\n<li>There was a <strong>16.9%<\/strong> increase in total homeowner equity<\/li>\n<li>Total homeowner equity reached over <strong>$1.5 trillion<\/strong><\/li>\n<\/ol>\n<p>Here\u2019s a map that shows the equity gains by state:<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/03\/15121437\/20210316-MEM-Eng-1.jpg?ssl=1\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><img data-recalc-dims=\"1\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44026\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/03\/15121437\/20210316-MEM-Eng-1.jpg?resize=650%2C488&#038;ssl=1\" alt=\"What Is the #1 Financial Benefit of Homeownership? | Simplifying The Market\" width=\"650\" height=\"488\" \/><\/a>Increasing equity is giving homeowners the power to better manage the challenges of the pandemic, especially for those spending more time at home. In the report, Frank Nothaft, <em>Chief Economist<\/em> for <em>CoreLogic<\/em>, explains:<\/p>\n<blockquote>\n<p><em>\u201cThis equity growth has enabled many families to finance home remodeling, such as adding an office or study, further contributing to last year\u2019s record level in home improvement spending.&#8221;<\/em><\/p>\n<\/blockquote>\n<p>The financial advantage homeowners have has not gone unnoticed. In the same report, Frank Martell, <em>President and CEO<\/em> of <em>CoreLogic<\/em>, states:<\/p>\n<blockquote>\n<p><em>\u201cThis growing bank of personal wealth that homeownership affords was noticed by many but in particular for first-time buyers who want a piece of the cake.\u201d<\/em><\/p>\n<\/blockquote>\n<h4><strong>Increasing wealth benefits more than just homeowners.<\/strong><\/h4>\n<p>Last year, the <em>Rosen Consulting Group<\/em> released a <a href=\"https:\/\/www.nar.realtor\/sites\/default\/files\/documents\/white-paper-homeownership-incentivized-by-federal-system-02-06-2020.pdf\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">report<\/a> outlining the benefits of homeownership. In that report, they explained what an increase in net worth \u2013 which they call the \u201cwealth effect\u201d \u2013 means to the economy:<\/p>\n<blockquote>\n<p><em>\u201cIn economic literature, the wealth effect is a term used to describe the fact that individuals have a tendency to increase their spending habits when their actual or perceived wealth increases. For homeowners, the latent savings achieved by building equity in their home and the growth in home values over time both contribute to increased net worth. Through the wealth effect, this in turn translates to households having a greater ability and willingness to spend money across a wide range of other types of goods and services that spur business activity and provide a positive multiplier effect that creates jobs and income throughout the economy.\u201d<\/em><\/p>\n<\/blockquote>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>Homeownership builds wealth through equity, and this creates a positive impact for homeowners and their communities. Let\u2019s connect today if you\u2019re ready to invest in a home of your own.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many financial and non-financial benefits of homeownership, and the greatest financial one is wealth creation. Homeownership has always been the first rung on the ladder that leads to forming household wealth. As Freddie Mac explains: \u201cHomeownership has cemented its role as part of the American Dream, providing families with a place that is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3452,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-3451","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is the #1 Financial Benefit of Homeownership?&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/what-is-the-1-financial-benefit-of-homeownership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is the #1 Financial Benefit of Homeownership?&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"There are many financial and non-financial benefits of homeownership, and the greatest financial one is wealth creation. 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