The U.S. Homeownership Rate Is Growing

The desire to own a home is [still strong](https://www.simplifyingthemarket.com/2022/07/05/is-homeownership-still-the-american-dream/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) today. In fact, according to the [_Census_](https://www.census.gov/housing/hvs/files/currenthvspress.pdf), the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year: [](https://i0.wp.com/cherylbowerrealestate.com/wp-content/uploads/2022/08/20220815-MEM-Eng-1.png?ssl=1) **That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.** If you’re thinking about [buying a home](https://www.simplifyingthemarket.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) this year, here are just a few reasons why so many people see the value of homeownership. #### **Why Are More People Becoming Homeowners?** There are several benefits to owning your home. A significant one, especially when [inflation](https://www.simplifyingthemarket.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the _National Association of Realtors_ (NAR), [explains](https://sponsorcontent.cnn.com/interactive/nar/benefits-of-home-ownership/): > _“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. **Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages**.”_ When you [buy a home](https://www.simplifyingthemarket.com/2022/08/03/buying-a-home-may-make-more-financial-sense-than-renting-one/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years. That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also [gain equity](https://www.simplifyingthemarket.com/2022/07/06/how-your-equity-can-grow-over-time/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) over time as your home appreciates in value and you make your monthly mortgage payment. And with that growing equity, your [net worth](https://www.simplifyingthemarket.com/2022/07/13/should-i-buy-a-home-right-now/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) will increase as well. In fact, the [latest data](https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf) from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. **That means a homeowner’s net worth is nearly 40 times that of a renter.** [](https://i0.wp.com/cherylbowerrealestate.com/wp-content/uploads/2022/08/20220815-MEM-Eng-2.png?ssl=1) ### **Bottom Line** The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the homebuying process today. Posted in [First Time Home Buyers](https://cherylbowerrealestate.com/category/first-time-home-buyers/), [For Buyers](https://cherylbowerrealestate.com/category/for-buyers/), [Housing Market Updates](https://cherylbowerrealestate.com/category/housing-market-updates/), [Rent vs. Buy](https://cherylbowerrealestate.com/category/rent-vs-buy/)