This is an interesting article with statistics on how homeownership builds your wealth. No doubt that building financial wealth is important in the long run for families, but what I find more important for the families in our Home Today™ program is the emotional wealth they are given the opportunity to build. Read the short article below, and then I have an inspiring story to share with you.
by The KCM Crew on February 9, 2015
Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.
Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.
Some of the findings revealed in their report:
- The average American family has a net worth of $81,200
- Of that net worth, 61.4% ($49,856) of it is in home equity
- A homeowner’s net worth is over 36 times greater than that of a renter
- The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400
There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.
One story always comes to mind when discussing emotional wealth. It’s about a young family whose Dad was struck with cancer. This tragic event led the family through some rough times, as they cared for him and struggled to keep up with their financial obligations. Fortunately, he was eventually able to rid himself of the cancer, fully recover and start working again. However, the couple already had one child and another one on the way, and they knew they didn’t want to be renters anymore, living at the whim of a landlord.
They joined our program in 2012, and 2 ½ short years later they were able to get financing and own their own home. This happy ending doesn’t adequately portray the emotional roller coaster this family had been through. After moving into their new home in 2012, the mother shared with us, “You know we almost felt like 2nd class citizens before we found the Home Today™ program, but once we found our home on the open market, everything changed for us. We loved walking through our new neighborhood. When people asked, ‘Which one is your home?’ we were able to proudly point and say ‘That one there,’ and truly mean it. It opened doors that we didn’t even know existed, and we finally felt like we were back in control of our lives again.”
Her powerful statements display a type of wealth that can’t be measured, but you know has changed their lives for the better. We are really proud of this family for their success and we are excited to be helping other families like this one open those doors and get back in control of their lives again.