Consumers & Community

Home ownership is how many American families begin to accumulate wealth. According to the most recent data from the Federal Reserve Board (page A11) a homeowner’s net worth is 11 times that of a renter’s. (Mean net worth of $778,200 for owners versus $70,600 for renters).

According to the 2010 National Association of REALTORS® Profile of Home Buyers and Sellers, first-time buyers most often cite the desire to own a home as the primary reason for their recent home purchase. Eighty-five percent of all recent home buyers consider that home purchase a solid investment, and 76 percent of them believe owning a home is as good as or better than an investment in stocks.

Home ownership provides important social benefits. It provides shelter and security to families, and fosters involvement in community life as well as participation in democratic institutions. Homeowners are more likely to vote and they volunteer time for political and charitable causes more frequently than renters, according to the NAR study, Social Benefits of Home ownership and Stable Housing .

According to data from the U.S. Census Bureau, owners do not move as frequently as renters, providing more neighborhood stability. In turn, involvement in community quality-of-life issues helps prevent crime, improve childhood education and support neighborhood upkeep.

According to data from the U.S. Census Bureau , rent as percentage of household income has been rising, while affordability for homeowners has remained stable. In 2009, 51.5 percent of renters spent 30 percent or more of their household income on housing costs, comparted to only 37.6 percent of homeowners.