By Orlando Gonzales
As realtors, we spend a lot of time talking to our clients about the process of buying and selling a home including discussions on understanding the goals of clients who want to find a home for their growing family, downsize to adjust for being empty nesters, or to make their first purchase to move away from renting and begin to build wealth through home equity. Those goals are all familiar to us, but we rarely hear people aspire to some of the secondary benefits of homeownership which are worth noting.
In short, homeownership has health and social benefits and those outcomes are worthwhile goals for anyone who wants to thrive. Among the benefits are positive outcomes for financial gain, stability, health, and child rearing.
Financial Gain: Homeownership is a long-term financial investment with the potential to increase in value. While there are risks that come from market busts, those instances are most felt when homeownership is held in a short term. Under normal housing market conditions, homeowners generally experience tremendous wealth gains. Wealth is one of the strongest determinants of health and investment in homeownership has been the primary long-term strategy to build wealth in the United States.
Stability: Renters tend to move frequently as they are constantly responding to increased costs from year to year or are dissatisfied with the lack of care and responsiveness from their landlords. Conversely, homeowners move less frequently than renters which creates a greater sense of responsibility and care for the home and community. Homeowners tend to create more social ties and lasting relationships that contribute to positive mental health and happiness. Strong social ties consistently result in higher self-esteem and satisfaction.
Health Benefits: A steady home environment provides security and routine, allowing for lower child unintentional injury rates, higher self-esteem and lower levels of distress, and more positive mental health, which is associated with lower stressors and blood pressure. Overall well-being for a person improves from renting to owning a home.
Benefits to Children: Children of homeowners are more likely complete high school and score better on standardized tests than the children of renters. Educational attainment leads to increased chances of getting into college, better-paying jobs, and overall long-term success. Moreover, there are also lower amounts of teenage delinquencies within a home environment. Homeowners provide their children with a model for stability. Parents in a home pass knowledge onto their children through active and passive learning as children watch their parents’ behaviors and habits. Much is learned from caretaking for the home through regular maintenance and applying financial skill and discipline to handle mortgage payments.
Social Benefits: In communities with a higher number of homeowners there tends to be a greater sense of community and neighborhood well-being. Homeowners are more likely than their renting counterparts to be active in community organizations, vote, give to charity, feel attached to their neighborhood, and help maintain their home and community. Participating in the community helps increase one’s sense of belonging which provides social and health benefits to the homeowner.
There is no arguing that there are great benefits in homeownership as it supports the ability to not just survive but thrive. At the Capital Estate Group of Compass, we are happy to help you find a home to call your own. We look forward to seeing you and your family flourish.