Home ownership continues to be a sound investment over the long term. In the October 2010 white paper “The Long-Term Value of Home Ownership in the U.S.,” the National Association of REALTORS® offers a historical look at the social and economic effects of home ownership over the last 50 years.
Some highlights from the report:
- Over time, during most of the past 50 years, roughly two out of three households in the U.S. have been home owners.
- Today, home owners pay 80 to 90 percent of the income taxes in the U.S. and, among those who claim the mortgage-interest deduction, nearly two-thirds are middle-income earners.
- For each home purchase, approximately $60,000 in direct and indirect spending occurs in the economy.
- For people who have purchased in recent years and plan to hold onto their homes for a normal period of home ownership, expectations of healthy gains are on firm ground.
- Home owners accumulate significantly more net household wealth than renters.
- The relationship between median family income, median home price and average mortgage-interest rate is hovering at the most favorable level [since] 1970.
- There’s never been a period in American history when home buyers had more purchasing power than they do today.