Why Owning a Home is Still the Best Way to Build Wealth in America (Part 2 of a Two-Part Series Featuring Jessica Lautz, Deputy Chief Economist, NAR)

Despite the challenges, homeownership remains one of the most powerful ways to build long-term wealth. In fact, the typical homeowner has 41 times more wealth than the average renter!

Dr. Jessica Lautz explains why:

Home Prices Keep Rising

Since 2020, home prices have gone up 65% in many states, including Georgia. Even though interest rates are higher than they were a couple of years ago, real estate experts predict that home prices will continue to rise because demand remains strong.

If you’re waiting for prices to drop, you might be waiting a long time.

The Rise of Cash Buyers and Higher Down Payments

Another surprising trend? More people are paying cash for homes—even first-time buyers. In fact:

• Nearly 1 in 10 first-time homebuyers are purchasing homes in all cash.

• Many are using inheritance money or financial investments to boost their down payments.

• A third of repeat buyers are paying in full with cash, using equity from their previous homes.

This means that the competition for affordable homes is fierce, and buyers need a solid financial plan to win in today’s market.

Homeownership and Wealth Building

One of the biggest advantages of buying a home is the equity you build over time. Homeowners can leverage their property wealth for:

• Retirement savings

• Investing in another home

• Helping their children buy a home

• Handling emergencies

Here’s the reality:

• Typical homeowner’s net worth: $415,000

• Typical renter’s net worth: $10,000

That’s a massive difference—and it’s why so many financial experts encourage homeownership as part of a long-term wealth strategy.

What’s the Solution?

The good news? There are programs and strategies that can help you buy a home—even in a tough market. Some ways to make homeownership possible:

• Explore first-time buyer programs that offer down payment assistance.

• Consider “house hacking”—buying a home with extra space to rent out and help cover your mortgage.

• Work with a knowledgeable real estate professional to find homes that fit your budget and lifestyle.

Ready to Start Your Home-Buying Journey?

• 🎥 Follow our YouTube channel for expert home-buying tips.

• 🎵 Listen to Deborah Morton every week on WSB Talk Radio 95.5 FM.

• 📲 Download the FREE Inside Georgia Real Estate app for local market insights.

• 📋 Claim your FREE buyer or seller guide today!

Buying a home may feel overwhelming, but with the right strategy and expert guidance, you can make it happen. Start planning today, and take control of your future!