If you need assistance, please call 630-276-7575

How Much “Housing Wealth” Can You Build in a Decade?

Thursday, February 27, 2020   /   by Teresa Ryan

How Much “Housing Wealth” Can You Build in a Decade?

Earlier this month, the National Association of Realtors (NAR) released a special study titled Single-Family Home Price Gains by Years of Tenure. The study estimates median home price appreciation over the last 30 years based on the length of homeownership.


Below are three graphs depicting the most important data revealed in the study.


How much have home prices increased?

One of the first measures of the financial benefits of homeownership is the net worth (in the form of equity) an owner can build over time. The study showed the average increase in home values based on how long homeowners stayed in a home.?

20200227-MEM-Eng-1.jpg

 
What was the percentage of appreciation?

Another way to look at this is by the percentage increase in value over time, called appreciation: 20200227-MEM-Eng-2.jpg


Was this appreciation consistent throughout the country?

Today, when we think of markets that have done well over the last decade, we have a tendency to think about San Francisco, San Diego, Seattle, and other West Coast cities. Though it is true the West Region showed the highest price growth over the last three decades, we can see how every region of the country did quite well in ten-year increments:

20200227-MEM-Eng-3.jpg


This data validates the claim that homeownership is great for building wealth. The importance of this information was highlighted in the study’s first sentence:

“Homeownership is an important source of wealth creation, enabling current homeowners and succeeding generations to move up the economic ladder.”


Bottom Line

Homeownership has many financial and non-financial benefits. The accumulation of “housing wealth” through increased equity is a major one. If you’re thinking of buying a home for the first time or moving up to your dream home, the sooner you make the move, the sooner your net worth will begin to grow.


Call Teresa Ryan at 630-718-0424 today, for your home buying and selling needs in Naperville and the western Suburbs of Chicago. For inquiries, please call 630-276-7575.

Subscribe to our YouTube Channel for real estate insights, updates and news!
http://bit.ly/RHGChannel

Join us on social:
Facebook: https://www.facebook.com/RyanHillGroup/
Twitter: https://twitter.com/ryanhillgroup
Instagram: https://www.instagram.com/ryanhillgroup/


  teresa ryan, naperville il, century 21 affiliated naperville, ryan hill group, homebuyer, first time homebuyer, homebuying tips, home buying tips

Ryan Hill Group - Century 21 Affiliated
Teresa Ryan
1288 Rickert Dr., Third Floor
Naperville, IL 60540
630-276-7575

The data relating to real estate for sale on this website comes in part from the Broker Reciprocity program of Midwest Real Estate Data LLC. Real Estate listings held by brokerage firms other than Ryan Hill Group - Century 21 Affiliated are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (a little black house) and detailed information about them includes the names of the listing brokers. Some properties which appear for sale on this website may subsequently have sold and may no longer be available. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. © Many homes contain recording devices, and buyers should be aware they may be recorded during a showing. Copyright © 2020 Midwest Real Estate Data LLC Information deemed reliable but not guaranteed. Properties marked with the MRED icon are provided courtesy of Midwest Real Estate Data, LLC. Broker Reciprocity. Use of this site constitutes agreement to the terms and conditions. DMCA Notice