As home values climbed throughout the pandemic, so did the prosperity of American homeowners. For most homeowners, this yielded substantial equity gains. Recently, Selma Hepp, CoreLogic’s Chief Economist, confirmed that, “U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”
When you buy a house, home equity accumulates through a combination of price appreciation and paying the principal payments on your mortgage. The longer you remain a homeowner, the more you can stand to gain.
Here’s an example:
These numbers illustrate why so many Americans see homeownership as their top long-term investment. Owning a home is how most people in the U.S. build their prosperity.
If you’re ready to buy a house, this investment can also be money-saving. As rents and inflation climb, your monthly mortgage payment will stay relatively fixed. This is why homeownership is largely considered a reliable hedge against inflation.
Homeownership ranks as Americans’ number one investment, and it’s also still part of the American dream. While the American dream is entirely personal, it often encompasses prosperity, success, and freedom. Homeownership speaks to all these goals as it can support a sense of community belonging, financial stability, and achievement.
In a recent Bankrate survey asking participants to rank markers of economic prosperity, homeownership again came out on top. Nearly three-quarters of respondents said they prioritized owning a house over being prepared to retire (62 percent), career success (61 percent), owning a car (52 percent), having kids (42 percent), and graduating from college (33 percent).