Why Owning a Home Pays Off in the Long Run

Today’s mortgage rates and home prices might make you question whether buying a home is the right move right now. While these market factors are important, it’s essential to keep the bigger picture in mind: the long-term advantages of homeownership.

Consider this: If you know people who bought a home 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 appreciate over time, which also helps increase a homeowner’s net worth. Let’s explore how this growth can add up significantly over the years.

Home Price Growth Over the Years

The map below, based on data from the Federal Housing Finance Agency (FHFA), illustrates how home prices have risen over the past five years. Since trends vary by region, the map breaks it down to highlight these differences and showcase broader market patterns.

Nationally, home prices have risen by over 57% in just five years. While some regions are slightly above or below that average, the overall trend shows significant growth in a relatively short time. Looking at the bigger picture, the advantages of homeownership—and the substantial gains homeowners have achieved over the years—become even more evident (see map below):

The second map reveals that over the past 30 years, home prices have appreciated by an average of over 320% nationwide.

A typical homeowner who purchased a house around 30 years ago has seen their property triple in value over that time. That’s a key reason why so many homeowners who bought years ago remain satisfied with their decision today.

Bottom Line

Today’s market may be challenging, but if you’re prepared to buy now, connecting with a real estate agent can help you navigate your options and make your move a reality. This allows you to start benefiting from the long-term advantages of homeownership, including building wealth as your property value grows over time.