Everyone knows the social advantages
of home ownership. However, some question the financial benefits of owning a home. Three recent studies shed some light on the issue.
recently released a report
comparing home price appreciation to wage growth over the last two years. The study revealed that home price appreciation has outpaced wage growth in 76% of U.S. housing markets during that time period. By how much? Here is a graph showing their findings:
And we all know the importance of home appreciation in determining the net wealth of most American families. Merrill Lynch
just issued a report
covering the issue. Their findings are shown here:
It obviously makes financial sense to be a homeowner.
But, does it make sense to buy now?
The survey company Pulsenomics
just issued their findings
on the cost of owning versus the cost of renting. They compared historical averages to the cost you can expect to pay today.
The cost of buying is far below historical averages. Renting is another story.
“Does Homeownership Make Sense Financially?” Keeping Current Matters. N.p., 16 Apr. 2015. Web. 16 Apr. 2015.