SALT LAKE CITY — There has been a lot of talk about home ownership, maybe even within your circle of family, friends, or with your partner, you have discussed buying a home over renting.
A 2024 Aspen Institute study revealed the median net worth of US homeowners is $400,000 compared to the median renters’ net worth of just over $10,000. A report from the National Association of Realtors shows that since 2012, middle-income homeowners have seen their properties appreciate by 68%, accumulating over $120,000 in wealth.
Dave Nellis with America First Credit Union explains that the disparity in net worth and asset gain between homeowners and renters is primarily attributed to home equity. “Home ownership represents a path or a journey to financial security, because all the payments that you put into that home are going to go to your future.” Nellis continues, “If you’re just renting, you’re paying the payment for a landlord, and those are just monthly payments that go to build somebody else’s wealth. But home ownership really builds your personal wealth, your wealth for the future.”
Something to keep in mind here, in regards to today’s market, interest rates.
Nellis says lots of people immediately shy away from buying a home because they think interest rates are too high, but interest rates can be refinanced when there is a market change, so you aren’t locked in forever.
Going to your bank or credit union can be a huge help in figuring out how much you can afford, the interest rate you qualify for, and also they can be a resource in pointing you in the right direction for any home buying programs that can offer lower rates and even help with down payments.
Getting some guidance on such a huge purchase may not only help you save smarter but also gain equity for your future.
