June marks National Homeownership Month, which recognizes the value of homeownership and its positive impact on families, communities and the nation’s economy.
This month is a time to celebrate and help promote the American Dream of homeownership while pointing out the many benefits of owning a home.
Most experts agree homeownership is one of the best investments a person can make to begin building wealth, but that’s not all. Homeownership can lead to financial and social stability and build community.
While they might seem unrelated on the surface, Greater Chattanooga Realtor’s partnerships with Habitat for Humanity of Greater Chattanooga Area and the Snack Pack Ministry are aligned with why homeownership matters.
Habitat works to build simple, decent and affordable homes, while the Snack Pack Ministry ensures children in our community have something to eat over the weekend. Through these partnerships, we aim to create opportunities for our neighbors to have access to housing and build wealth to provide for their families.
Homeownership also puts many people to work. For Tennessee, the real estate industry accounted for $69.2 billion, which represents 14.5% of the gross state product in 2022. That translates to an average of $114,100 per home in our state. That equals many jobs in many fields across the state.
Often, clients are surprised to learn they can make a down payment on a home that’s about the same amount as a deposit on a rental property. And the financial benefits don’t stop there, as purchasing a home is the first step in building equity.
Over time, as the housing needs of your family change, you can upsize and downsize accordingly. You can use the wealth accrued from your current home and apply it toward a new home that meets your needs.
While it’s true that interest rates have risen to nearly 7%, I think it’s important for people to realize that often renters are paying each month and have no access in that home’s equity, which in essence means they’re paying 100% interest.
Compared to renting, purchasing a home is a way to limit the impact of inflation. It’s not uncommon for rents to fluctuate with inflation; however, when purchasing a home, you can lock in a rate that remains the same for the life of the mortgage and even refinance if rates come down.
Think home prices are too steep? If you can afford it, homeownership can deliver returns on your investment over years. Our local housing market statistics show a gradual increase in median home prices over the last 10 years. The sooner you invest in a home, the sooner you’ll invest in yourself and your path toward long-term financial stability.
Sound complicated? Try this. Think of owning your own home as an investment in not only your future but also your family’s future.
Interested in getting started on the journey of buying your own home? Contact a Realtor. We have the tools and professional knowledge to help you walk this path.
Realtors are here to be your housing resource. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serve Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade, and Walker counties in northwest Georgia. The Association is one of approximately 1,100 local associations/board of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service (MLS), which is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local Association membership is comprised of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multi-family, property management and residential. Working alongside Realtors are our Affiliate members, who represent related industries in sympathy with the objectives of the Association. Our Affiliate members include mortgage lenders, home inspectors, title and closing services, pest inspection and control and insurance.