Why Owning a Home Is Worth It in the Long Run

Why Owning a Home Is Worth It in the Long Run

Today’s mortgage rates and home prices might make you question whether buying a home is still a good move. While market conditions are an important consideration, it’s also essential to focus on the bigger picture: the long-term benefits of homeownership.  

Think about it this way—if you know people who bought homes 5, 10, or even 30 years ago, it’s unlikely you’ll find many who regret their decision. That’s because home values tend to increase over time, contributing to significant growth in a homeowner’s net worth. Here’s a closer look at how that can build over the years.

Home Price Growth over Time

The map below, based on data from the Federal Housing Finance Agency (FHFA), highlights how home prices have appreciated over the past five years. Because home values differ by location, this regional breakdown helps illustrate broader market trends across various areas.

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

While certain regions may have experienced price growth slightly above or below the average, the overall trend shows a significant increase in home prices over a relatively short period. Zooming out further, the long-term benefits of homeownership become even more evident, as the dramatic gains homeowners have achieved over time are highlighted in the data (see map below):

The second map reveals that, over a span of approximately 30 years, home prices appreciated by an average of over 320% nationwide. This means the typical homeowner who purchased a house three decades ago likely saw their home's value triple during that time. It's one of the key reasons why so many long-time homeowners remain satisfied with their decision.

Bottom Line

Today’s market may be challenging, but if you’re prepared to buy, let’s connect. Together, we can navigate the complexities and focus on securing the long-term benefits of homeownership, like building wealth as your home appreciates over time.