POSITIVE IMPACTS OF HOME OWNERSHIP

  Even after going through the burst of the housing bubble Americans are ready to climb back on the horse and attain home ownership.  A recent Harvard Study entitled Special Benefits Of Home Ownership After The Housing Crisis, outlines why 85% of Americans still feel that owning their own home is a big piece of the American Dream.
  Why do Americans favor home ownership? Here are a few reasons:

1) Want a good place to raise their children
2)Want their family to be in a safe environment
3) Want or need more space
4) Want the ability to renovate, i.e. make the space their own
5)Believe that home ownership is a better investment than renting

  The Federal Reserve would bear out number 5 since their numbers show an average of a home owner's net worth being 30 times that of a renter's net worth. The national average of net worth for a home owner is $175,000.  For a renter-$5000.  For the United States, 61% of the net worth of our citizens is in home equity.  The other interesting number that the Fed gives us is that home ownership is 35% cheaper than renting a home. So the old adage that you can pay your own mortgage or you can pay your landlord's appears to be true.

  In addition the Harvard study collected some theories regarding the positive impact created by home ownership:

1) Wealth creation
2)Greater residential security
3)Better quality home environment for children
4)Better quality neighborhood-which includes better schools, better educational outcomes, less crime
5)Heightened sense of accomplishment

The negative factors cited by the study were these:

1)Mobility restrictions-moving from place to place is not as easy
2)Mortgage payment stress and fear of foreclosure
3)The impacts of home maintenance and the expense of repair

  Overall the findings of the study were that home ownership is still highly desirable-even after going through the past few years. It is still viewed as a net positive.