Homeownership Is a Long Term Investment

Today’s mortgage rates and home prices may have you second-guessing about whether it’s a good idea to buy a home right now. Well-meaning relatives and friends could be telling you to keep renting or stay in the home you own that your family outgrew several years ago.

While market factors are definitely important, there’s also a bigger picture to consider: the long-term benefits of homeownership.

Think of it this way. If you know people who bought a home five, 10, or even 30 years ago, you’re probably going to have a hard time finding anyone who regrets their decision. That’s because over time, home values usually grow – and that means a homeowner’s net worth does too. Here’s a look at how that can really add up over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to show how much prices have grown over the last five years. Since home prices vary by area, the map is broken out regionally to really showcase larger market trends:

You can see that nationally, home prices increased by over 57% in just five years.

On Cape Cod, the median sales price of a single family home for 2024 is currently $766,000.00. Five years ago it was was $432,000.000!

Some regions are slightly above or below that average, but overall, home prices saw a big uptick in a short time. And if you zoom out even more, the benefit of homeownership — and the drastic gains homeowners made over the years — become even more clear (see map below):

The second map shows that, over a roughly 30-year span, home prices appreciated by an average of more than 320% nationally.

So the typical homeowner who bought a house about 30 years ago saw their home triple in value during that time. And that’s a major reason why so many homeowners who bought their homes years ago are still happy with their decision today.

Bottom Line

Let’s be honest. Buying a home can be a scary proposition. It’s the most important investment many of us make in our lifetimes so we shouldn’t be casual about it.

If you think you might be ready and able to buy right now — or just want to talk through your options — let’s connect. We’ll help you review your options to see if you can start taking advantage of the long-term financial benefits that come with homeownership, like your ability to build wealth as your home value rises!

Let’s talk soon…

Mari and Hank

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.