HomeBuyer Guild

Homeownership; It's Still The "American Dream" For a Reason

Some people doubt as to whether younger generations still consider owning a home as part of the "American Dream". A recent study by Merrill Lynch put those doubts to rest.

According to their research, every living generation still maintains that owning a home is in fact important to them. This shouldn't surprise us as many studies have revealed the benefits enjoyed by the families who own their home. (fig.1)

One such study was done by the Joint Center of Housing Studies at Harvard University that addressed a major financial benefit to owning your own home: forced savings. The report explains:

"Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day."

Percent Who Agree Home Ownership Is an Important Part of the "American Dream"

There is a small percentage of our population who do not subscribe to the notion of homeownership being a core component of the American dream. They are more concerned about having enough money to retire comfortably than about becoming a home owner. But I would disagree with this notion. I believe that home ownership makes more financial sense for savings over the long haul. The Merrill Lynch study proves this point with the following data on home equity (a form of savings).

According to the study, people who own their homes for 30+ years can expect equity in their homes to be in the triple digits by the time they retire.

When you buy your first home, the fears of making that monthly payment can be daunting. We know that real estate values fluctuate from time to time, but what is certain is that property values will always increase over time.

With lifetime homeownership the payoffs can be very rewarding, and in the end you will be able to comfortably enjoy retirement!