Is Homeownership Still the American Dream?
Defining the American dream is personal, and no one individual will have the same definition as another. But the feelings it brings about – success, freedom, and a sense of prosperity – are universal. That’s why, for many people, homeownership remains a key part of the American dream. Your home is your stake in the community, a strong financial investment, and an achievement to be proud of.A recent survey from Bankrate asked respondents to rank achievements as indicators of financial success, and the responses prove that owning a home is still important to so many Americans today (see graph below):As the graph shows, homeownership ranks above other significant milestones, including retirement, having a successful career, and earning a college degree.That could be because owning a home is a significant wealth-building tool and provides meaningful financial stability. The National Association of Realtors (NAR) explains:“Homeownership builds financial security. With 65.5% of Americans owning homes, the net worth of a typical homeowner is nearly 40 times the net worth of a non-owner.”There are other ways your home acts as more than just a roof over your head, too. The Mortgage Reports highlights a few of the many benefits homeowners enjoy, including:Your equity (and wealth) grows through home price appreciation.Your housing costs are fixed – and that can help combat rising costs from inflation.You’ll have greater privacy and the opportunity to customize your living space.Plus, homeowners tend to be more active in their community. Like NAR says:“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”What Does That Mean for You?If your definition of the American Dream involves greater freedom and prosperity, then homeownership could play a major role in helping you achieve that dream. When you set out to buy, know there are incredible benefits waiting for you at the end of your journey. You’ll have a place you can call your own, feel most comfortable, and grow your wealth.First American puts it best, saying:“Homeownership remains central to the pursuit of the American Dream. It is a critical driver of economic mobility, delivering financial and social advantages. . . .”Bottom LineBuying a home is a powerful decision and a key part of the American Dream. And if homeownership is part of your personal dreams this year, let’s connect and start the process today.
¿Sigue siendo el sueño americano la propiedad de la vivienda?
Definir el sueño americano es personal, y ningún individuo tendrá la misma definición que otro. Pero los sentimientos que produce, el éxito, la libertad y una sensación de prosperidad, son universales. Es por eso que, para muchas personas, la propiedad de la vivienda sigue siendo una parte clave del sueño americano. Su casa es su participación en la comunidad, una fuerte inversión financiera y un logro del cual estar orgulloso.Una encuesta reciente de Bankrate pidió a los encuestados que clasificaran los logros financieros, y las respuestas demuestran que ser propietario de una casa sigue siendo importante hoy para muchos estadounidenses (vea la gráfica a continuación):Como muestra la gráfica, ser propietario de vivienda se ubicó por encima de otros hitos importantes, incluida la jubilación, tener una carrera exitosa y obtener un título universitario.Eso podría deberse a que ser propietario de una casa es una herramienta característica de la creación de riqueza y proporciona una estabilidad financiera significativa. La Asociación Nacional de Realtors (NAR por sus siglas en inglés) explica:“La propiedad de la vivienda genera seguridad financiera. Con el 65.5 % de los estadounidenses siendo propietarios de viviendas, el patrimonio neto de un propietario típico es casi 40 veces el patrimonio neto de un no propietario”.También hay otras formas en que su casa actúa como algo más que un techo sobre su cabeza. The Mortgage Reports destacan algunos de los muchos beneficios que disfrutan los propietarios de viviendas, incluyendo:Su plusvalía (y riqueza) crece a través de la apreciación del precio de la vivienda.Sus costos de vivienda son fijos, y eso puede ayudar a combatir el aumento de los costos de la inflación.Tendrá mayor privacidad y la oportunidad de personalizar tu espacio vital.Además, los propietarios tienden a ser más activos en su comunidad. Como dice NAR:“Vivir en un lugar durante un período de tiempo más largo crea un sentido obvio de orgullo comunitario, lo que puede conducir a una mayor inversión en dicha comunidad”.¿Qué significa eso para usted?Si su definición del sueño americano implica una mayor libertad y prosperidad, entonces la propiedad de la vivienda podría desempeñar un papel importante para ayudarle a lograr ese sueño. Cuando se proponga comprar, sepa que hay increíbles beneficios que le esperan al final de su trayectoria. Tendrá un lugar que puede llamar suyo, sentirse más cómodo y aumentar su patrimonio.First American lo expresa mejor, diciendo:“La propiedad de la vivienda sigue siendo fundamental para la búsqueda del sueño americano. Es un motor crítico de la movilidad económica, ofreciendo ventajas financieras y sociales…”.En conclusión,Comprar una casa es una decisión poderosa y una parte clave del sueño americano. Y si la propiedad de la vivienda es parte de sus sueños personales este año, vamos a comunicarnos y comenzar el proceso hoy.
Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans
Today we take time to honor and recognize the past and present experiences of Black Americans. When it comes to real estate specifically, equitable access to housing has come a long way, but the path to homeownership is still steeper for households of color.The Gap in Homeownership Rate in AmericaIt’s a more challenging journey to achieve homeownership for some buyers, as shown by the measurable gap between the overall average U.S. homeownership rate and that of non-white groups. Today, Census data shows the lowest homeownership rate persists in the Black community (see graph below):This graph clearly indicates there’s a gap that still exists in the percentage of people in each community who are able to achieve homeownership. How Homeownership Impacts Household Wealth One of the challenges that could make buying a home harder for these groups is how difficult it can be to accumulate wealth. Even today, there are obstacles certain racial and ethnic groups, especially the Black community, still face. A recent article from NextAdvisor explains:“The median Black household earns 61 cents for every dollar earned by a comparable White household, according to the Economic Policy Institute. This not only makes it more difficult to afford a home, but also to accumulate and pass on generational wealth.”This can delay or prevent many from achieving homeownership, challenging their ability to grow their net worth and build wealth that can pass down to future generations – a point that’s clear in a 2022 report from the National Association of Realtors (NAR):“Given that homeownership contributes to wealth accumulation and the homeownership rate is lower in minority groups, data shows that the net worth for these groups is also lower. At $188,200, the net worth of a typical white family was nearly 8 times greater than that of a Black family ($24,100) in 2019.”It’s important to talk about the experience Black homebuyers may have and the challenges they may face as they pursue their dream of homeownership. The inequity that remains in housing can be a point of pain and frustration. That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process.These professionals aren’t only experienced advisors who understand the market and give the best advice. They’re also compassionate allies who will advocate for your best interests every step of the way. They can point you to important resources and tools that can help you throughout your journey to homeownership.Bottom LineOpportunities in real estate improve every day, but there are still equity challenges that many face. Let’s connect to make sure you have an advocate on your side to help you achieve your dream of homeownership.
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