The National Association of REALTORS(R) has published a report investigating the positive social outcomes of homeownership. Reviewing existing academic research, Tennessee REALTORS(R) illustrates the importance of creating policies that support sustainable homeownership.
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Tennessee REALTORS(R) represents over 36,000 members statewide and works to support its member base by advocating for private property rights, promoting homeownership, and driving ethical business practices. The organization offers various services, including advocacy, market research, education, and professional development.
Beyond its membership, Tennessee REALTORS(R) influence is also evident in shaping real estate policies and practices at the state and local level. “Every American citizen deserves the chance to own their own home,” says 2024 Tennessee REALTORS(R) President, Regina Hubbard. “Homeownership is a major part of financial stability and community well-being. This country was built on it.”
Homeowner Wealth vs. Renter Wealth
Among the most compelling arguments for private homeownership is its marked effect on wealth accumulation. According to a recent analysis by NAR, the median net worth of homeowners is nearly 40 times greater than that of renters. In 2022, homeowners boasted a median net worth of $396,000, while renters had a median net worth of just $10,400. Undeniable by statistics alone, owning a home can spell major advantages for a homeowner’s financial future.
“Homes are more than just places to live. When cared for and loved, they become an asset that appreciates in value as the years pass. Smart homeowners can use this equity for future financial needs – even the big ones, like education, retirement, or starting a business,” Hubbard explains.
The wealth gap between homeowners and renters is largely driven by home equity. Homeowners benefit from property appreciation and the forced savings of paying a mortgage. In contrast, renters do not accumulate equity and are often subject to rising rental costs, making saving and investing difficult.
NAR’s report, “Wealth Gains by Income and Racial/Ethnic Group,” reveals that properties owned by middle-income homeowners have appreciated by 68% since 2012, allowing them to accumulate $122,100 in wealth. Low-income homeowners earning less than 80% of their area’s median income gained $98,900 in equity. In contrast, upper-income households, who earn more than 200% of their area’s median income, accrued $150,800 in equity.
“Homeownership is a catalyst for building wealth for people from all walks of life,” says Hubbard. “Homeowners build a net worth about 40 times higher than a renter’s. It’s not just about reduced rent costs – the home itself is a wealth-growing tool all on its own.“
Additionally, homeowners have reduced their debt by 21% over the last decade, partly by refinancing their mortgages at lower interest rates. In turbulent economic times with highly unstable interest minimums, there has never been a better time to own a home.
The Domino Effect of Homeownership
The benefits of homeownership reach far beyond individual financial gains. Homeownership has a positive domino effect on communities, contributing to social stability, civic engagement, and overall quality of life. NAR’s research has shown that homeowners are more likely to participate in local elections, volunteer in their communities, and maintain their properties.
“People are proud of their homes. Their hard-earned time, heart and money are invested in the home and surrounding community. Why wouldn’t they work to improve the environment around it?” says Hubbard.
Stable housing also has notable benefits for families. Children whose parents own homes tend to perform better academically and have higher graduation rates compared to children of renters. Homeownership provides a stable environment that supports children’s educational and social development.
In addition, owning a home is associated with better health outcomes. Homeowners generally report higher levels of physical and mental well-being than renters. The stability and security of owning a home can reduce stress and provide a foundation for a healthier lifestyle.
How REALTORS(R) Support Homeowners, Sellers, and Prospective Buyers
REALTORS(R) offer support, assistance, and resources to current homeowners and prospective buyers. For those looking to purchase a home, REALTORS(R) can provide educational materials, market data, and the step-by-step guidance of a real estate expert. Tennessee REALTORS(R) also advocates on behalf of private property and homeownership rights, making the American dream more accessible to everyone.
“One of our key priorities is to remove barriers to homeownership. Many factors go into why someone can’t own a home – it isn’t always a matter of finances,” Hubbard notes.
REALTORS(R) Support Private Property Rights
The REALTORS(R) mission is to preserve, protect, and advance the right to real property for all. REALTORS(R) help individuals achieve the dream of owning a home through advocacy, research, and educational programs along with the financial and social benefits that come with homeownership.
As Regina Hubbard aptly says, “Homeownership is not just about having a place to live; it’s about building a foundation. A better future for individuals, families, and communities.“
About Tennessee REALTORS(R)
Tennessee REALTORS(R) is one of the state’s largest and most influential trade associations. Consisting of 20 local associations and 36,000+ members, the association provides a variety of services, including legislative and regulatory advocacy, professional development, professional standards training, and transaction-management solutions.
About National Association of REALTORS(R)
The National Association of REALTORS(R) is a trade association with over 1.5 million members. It comprises residential and commercial brokers, salespeople, property managers, appraisers, counselors, and others engaged in the real estate industry. Members belong to one or more of approximately 1,200 local associations/boards and 54 state and territory associations of REALTORS(R).
Contact Info:
Name: Tennessee REALTORS(R) Communications Team
Email: Send Email
Organization: Tennessee REALTORS(R)
Website: https://www.tnrealtors.com/find-a-realtor
Release ID: 89134683
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