Impact of Owning a Home

In spite of the past economic struggles, people continue to feel that homeownership is a good investment. According to a 2013 report, 72% of mortgage holders still believe owning your home is a safe investment. A survey done by Fannie Mae in 2012 revealed that the expectation that home prices will go up is improving since the housing crisis. Research supports the fact that homeownership increases financial satisfaction. The negative perception of homeownership during the financial crisis appears to be short lived.
Poor quality and crowded housing may have a negative effect on health. Homeowners tend to take better care of their homes which can positively impact their health. In addition, the wealth generated by homeownership often assists with paying for better healthcare. However, higher levels of stress and anxiety are seen in those experiencing foreclosure or a delinquent mortgage.
Many studies comparing owning a home versus renting a home show no correlation between children’s cognitive abilities and behavior, but homeownership leads to more children completing high school and college. A positive experience with owning your home generates increased participation in activities, and improved mental health. Homeownership also tends to create more citizens involved in and interested in their communities.
Some economists project that older millennials aged 25 to 34 will claim one-third of all home sales in 2016. One source of homes for this demographic comes from baby boomers who chose to downsize in preparation of their retirement years. Another source is new construction of single family homes as the construction industry grows. The projected increase in wages in 2016 will help potential buyers make the leapt into home ownership.
Programs such as the HOME program through Idaho Housing and Finance Association assists buyers with down payment and closing costs to help purchase a new home.
Interest rates remain at historically low levels, and as rental prices continue to rise more and more people are turning again to home ownership.