If you have been questioning whether to purchase a home or if it will be a successful investment, the answer is yes! The Federal Reserve has released a new study that states that the net worth of homeowners is forty times greater than the net worth of renters. Let’s take a look at what makes homeownership such a significant investment in your lifetime.
The decision to invest in real estate or stocks is a personal choice that depends on your financial situation, risk tolerance, goals, and investment style. Real estate and stocks have different risks and opportunities.
The Federal Reserve Bank of New York has stated that 93.3% of Americans believe that purchasing a home could be a better investment than contributing to the stock market. A majority of survey-takers also favored the idea of being a landlord to purchasing stocks, with more than 50% of the participating households preferring to own a rental property.
The most top rated reasons why Americans believe that buying a home is a better investment than stocks is because: housing prices are less volatile, the stability and comfort provided by housing, and for tax purposes.
These statistics prove how strongly Americans feel about utilizing homeownership as an investment. Homeownership is an asset for many Americans and contributes to wealth accumulation. Americans were also more likely to witness higher housing returns in 2021 than in previous years because of the incredibly fast paced home price appreciation that was seen nationwide.