After the crash of the housing market homeownership kind of got a bad rap which makes sense because there were so many people who had negative equity. As people continue to make mortgage payments and home values go up instead of down a lot more people have home equity.
Home ownership is down nationwide from what it was at the peak in 2005 but looks to be as strong as it was in the 1990’s. In the long run owning a home is still a great way to accumulate wealth. People who have their home paid off when they retire spend less on housing and have more money for food and health care. I guess some even have money for fun and travel. 🙂
Here is a looks at networth and home ownership from a presentation given by Lawrence Yun, Ph.D., NAR Chief Economist Ph.D., NAR Chief Economist, to the Residential Real Estate Forum at the 2014 REALTORS® Conference & Expo in New Orleans, LA on November 7, 2014.
That isn’t to say that now is a good time to buy a home. The good job needs to come first and those don’t seem to be all that easy to find but are at least more plentiful than they were a few years back. Over the long haul renting is usually better for the landlord economically than it is for the renter.