Happiness and Financial Soundness – Why Owning a Home is Good For You
Homeownership is a key milestone for many consumers. In fact, 94% of consumers say that owning a home is part of their American dream.
But what makes homeowners happy and financially sound? Our research shows that happy homeowners do a few things differently. They cook homemade meals, make sure rooms are neat and tidy and adhere to daily routines.
1. Homeownership is a long-term commitment
Homeownership is a big decision that affects your finances and lifestyle. You’ll be responsible for maintenance, lawn care, and homeowner insurance. But if you do it right, owning a house can be a wonderful experience.
Many homeowners say that owning a home has made them happier people, according to Redfin research. They also say that owning a home has encouraged them to pursue activities they enjoy, such as landscaping, cooking, and baking.
In addition, homeowners tend to move less often than renters, which can help give them a sense of stability and security. As humans, we have an evolutionary need for stability and community, which owning a home can provide. This can lead to a better quality of life and a stronger sense of belonging in the community.
2. It’s a great way to build wealth
Owning a home has long been considered a major step in the American dream and one of the best ways to build wealth. It provides safety, a tappable source of income and an asset that can be passed onto future generations.
In a recent study, homeowners reported higher levels of life satisfaction than renters did, even after controlling for the effects of other things like their health and family circumstances. The reason seems to be that owning a home helps people feel more in control of their lives.
Plus, when you’re a homeowner, your mortgage payments tend to be stable over time. This helps you budget your expenses and plan ahead for any upcoming maintenance costs. Having a home extended warranty protects their investment when it comes time for home repairs. Homeowners also have the opportunity to build up sweat equity by completing DIY projects and improving their homes over time.
3. It’s a good investment
Buying a home is considered by many experts to be a good investment. This is because a portion of your monthly housing payment goes toward paying down your mortgage principal, which builds equity in your home. This is a good way to build wealth and can be used as a down payment on a second home in the future. In addition, homes tend to appreciate over time, making them a solid long-term investment. However, not everyone is a homeowner by choice, and renting is also an option.
4. It’s a great place to raise a family
For many people, a house is more than just a place to live. It’s a place where memories are made and relationships are strengthened. It’s also a source of pride. Studies show that homeowners have greater life satisfaction and higher levels of happiness than renters.
Homeowners also tend to take more care of their homes and are more invested in their communities. This is partly because they have a sense of ownership and security that comes with being a homeowner. This can help keep crime rates lower in a community.
A survey by Fannie Mae found that 90% of respondents say that “Having a Great Place to Raise Their Family” is the main reason they choose to own their homes. Having a good location, with plenty of space for children to play and a short commute time are all important factors.
5. It’s a great way to save money
Homeownership requires a substantial investment, but it’s also a great way to save money. By creating a budget and setting aside an emergency savings fund, you can protect yourself against unexpected expenses and make your mortgage payments more manageable.
The problem with material purchases like homes is that they’re often positional goods, meaning that their appeal comes not just from the intrinsic value of the property as a place to live, but also how it compares to the houses of friends and neighbors. As a result, they don’t always increase happiness as much as people predict.
Nonetheless, homeowners do experience higher levels of life satisfaction than renters, regardless of income level or socioeconomic status. This is likely due to a combination of factors, including a sense of rootedness and greater control over their lives.