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 Benefits of Home Ownership
06/01/06 (NAHB): The benefits of home ownership are widely touted, and for
good reason: There are plenty. But they reach beyond just financial benefits,
home ownership has powerful social and economic benefits as well for our families,
our communities and our country. In recognition of the many benefits of
home ownership, the National Association of Home Builders (NAHB) joins the nation
in celebrating National Homeownership Month throughout the month of June.
Financially, homeownership provides Americans with the biggest tax break on the books, the
deductibility of mortgage interest and property taxes. A home is also a stable investment that
appreciates in value over time, increasing a home owner's borrowing power and allowing them to
build equity and a nest egg for retirement. Economically, construction employs 7.3 million people
and housing activity accounts for 16 percent of the GDP. Socially, home ownership is associated with
better educational opportunities, lower teen-age pregnancy rates and higher lifetime annual
incomes.
"Housing makes a significant contribution to our national economy, and it's important that we
celebrate and recognize that contribution this month," said David Pressly, NAHB president and a
home builder from Statesville, N.C. "But, despite that, not all Americans have an opportunity to share
in the dream of home ownership, and our members strive to make home ownership a reality for hardworking
Americans every day."
Today, nearly 70 percent of American families own their own home, up from 62 percent in 1960.
During that time, the population has grown by more than 119 million people and the median price of
a new home has increased from $18,000 to $240,000.
Even with this period of rising prosperity and recent low interest rates, millions of people are
finding it increasingly difficult to buy an affordable home in the communities where they work. Our
nation's teachers, firefighters, police officers, nurses and other middle-income individuals provide
the essential services we depend on, and yet cannot afford to own a home where they work.
During National Homeownership Month in June, and throughout the year, NAHB and its 850 state
and local affiliates are working hard to make affordable workforce housing a reality across the
country and a priority for our nation's leadership so that the benefits of home ownership can be
reaped by all. In the next decade alone, home builders will need to construct about 1.8 million new
homes and apartment units each year.
Restrictive policies and legislation hamper this growth,
adding to the rising cost of housing. Communities need to come together for a collective solution
that promotes builder investment and policies that advance affordable housing for all of their
citizens.
Owning a home is paramount to achieving the American Dream. To find out more about how that
dream can become a reality, and for further consumer information about the benefits of
homeownership, visit www.nahb.org/forconsumers.
NOTE: This article is for information purposes only and is not an endorsement or promotion of any company, methods, product or services.
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