Schedule time with me # Owning a Home a Major Financial Milestone Dated: September 6 2022 Views: 64 ### How Owning a Home Builds Your Net Worth  [Owning a home](https://www.simplifyingthemarket.com/2022/08/15/the-u-s-homeownership-rate-is-growing/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "Owning a home") is a major financial milestone and an achievement to take pride in. One major reason: the [equity](https://www.simplifyingthemarket.com/2022/07/06/how-your-equity-can-grow-over-time/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "equity") you build as a homeowner gives your net worth a big boost. And with high [inflation](https://www.simplifyingthemarket.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "inflation") right now, the link between owning your home and building your wealth is especially important. If you’re looking to increase your financial security, here’s why now could be a good time to start on your journey toward [homeownership](https://www.simplifyingthemarket.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "homeownership"). #### **Owning a Home Is a Key Ingredient for Financial Success** A [report](https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf "report") from the _National Association of Realtors_ (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters_._ It finds: > _“. . . the net worth of a homeowner was **about $300,000 while that of a renter’s was $8,000 in 2021.”**_ **To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter’s**. This difference shows owning a home is a key step in achieving financial success. #### **Equity Gains Can Substantially Boost a Homeowner’s Net Worth** The net worth gap between owners and renters exists in large part because homeowners build equity. When you own a home, your equity grows as your home [appreciates in value](https://www.simplifyingthemarket.com/2022/08/30/whats-actually-happening-with-home-prices-today/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "appreciates in value") and you make your mortgage payments each month. As a [renter](https://www.simplifyingthemarket.com/2022/08/03/buying-a-home-may-make-more-financial-sense-than-renting-one/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "renter"), you don’t have that same opportunity. A recent article from _CNET_ [explains](https://www.cnet.com/personal-finance/mortgages/should-you-buy-a-home-in-2022-heres-what-you-need-to-know/ "explains"): > _“**Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you're building equity in your home** . . ._ _When you rent, you aren't investing in your financial future the same way you are when you're paying off a mortgage.”_ But on top of that, your home equity grows even more as your home [appreciates](https://www.simplifyingthemarket.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "appreciates") in value over time. That has a major impact on the wealth you build, as a recent article from _Bankrate_ [notes](https://www.bankrate.com/home-equity/how-to-build-equity-in-your-home/ "notes"): > _“Building home equity can help you increase your wealth over time, . . . **A home is one of the only assets that have the potential to appreciate in value as you pay it down**_.” In other words, when you own your home, you have the advantage of your mortgage payment acting as a contribution to a forced savings account that [grows in value](https://www.simplifyingthemarket.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "grows in value") as your home does. And when you sell, any [equity](https://www.simplifyingthemarket.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/?a=1940-ee10a00d9ce1f206ef9b956c7c6b6c48 "equity") you’ve built up comes back to you. **As a renter, you’ll never see a return on the money you pay out in rent every month.** ### **Bottom Line** Owning a home is an important part of building your net worth. If you’re ready to start on your journey to homeownership, let’s connect today.  ### [Deanna Dellinger](https://www.lovingeasttennessee.com/agents/269187/Deanna+Dellinger) BUYERS: As a dedicated Realtor in Sevier County, Tennessee, I’m passionate about connecting people with the perfect investment properties in the scenic Smoky Mountains. Whether you'r.... - [](https://www.facebook.com/lovingeasttennessee)
- [](https://www.instagram.com/dellingerdeanna)
- [](https://www.pinterest.com/deannadellinger)
- [](https://www.twitter.com/DeannaDellinger)
- [](https://www.youtube.com/deannadellinger)
- [](https://www.linkedin.com/in/deanna-dellinger-164a7511) Login To Leave A Comment # Latest Blog Posts ## [July 2025 Sevier County Real Estate Market Update](https://www.lovingeasttennessee.com/blog/293184/July+2025+Sevier+County+Real+Estate+Market+Update) Posted by [Deanna Dellinger](https://www.lovingeasttennessee.com/agents/269187/Deanna+Dellinger) August 13 2025 [0 comments](https://www.lovingeasttennessee.com/blog/293184/July+2025+Sevier+County+Real+Estate+Market+Update) Sevier County’s real estate market is shifting gears. July 2025 brings cooler listing activity, softer pricing, and longer selling times—but steady sales volumes show that buyers are [Read More](https://www.lovingeasttennessee.com/blog/293184/July+2025+Sevier+County+Real+Estate+Market+Update) ## [Home Prices Have Risen Dramatically Over the Past 5 Years](https://www.lovingeasttennessee.com/blog/271267/Home+Prices+Have+Risen+Dramatically+Over+The+Past+5+Years) Posted by [Deanna Dellinger](https://www.lovingeasttennessee.com/agents/269187/Deanna+Dellinger) March 7 2025 [0 comments](https://www.lovingeasttennessee.com/blog/271267/Home+Prices+Have+Risen+Dramatically+Over+The+Past+5+Years) Your house could be worth way more than you think. Home prices have jumped nearly 60% in the past 5 years, and that means your house is probably worth more too. Here’s how that [Read More](https://www.lovingeasttennessee.com/blog/271267/Home+Prices+Have+Risen+Dramatically+Over+The+Past+5+Years) ## [The Perks of Buying a Newly Built Home](https://www.lovingeasttennessee.com/blog/270827/The+Perks+Of+Buying+A+Newly+Built+Home) Posted by [Deanna Dellinger](https://www.lovingeasttennessee.com/agents/269187/Deanna+Dellinger) March 3 2025 [0 comments](https://www.lovingeasttennessee.com/blog/270827/The+Perks+Of+Buying+A+Newly+Built+Home) Is a Newly Built Home Right for You? The Pros and ConsWhen searching for a home, you don’t want to skip over new builds as an option. Right now, there are more newly built homes to choose from [Read More](https://www.lovingeasttennessee.com/blog/270827/The+Perks+Of+Buying+A+Newly+Built+Home) ## [Options Like Buydowns, ARMs, or Assumable mortgages Could Make Homeownership More Affordable](https://www.lovingeasttennessee.com/blog/269916/Options+Like+Buydowns%2C+Arms%2C+Or+Assumable+Mortgages+Could+Make+Homeownership+More+Affordable) Posted by [Deanna Dellinger](https://www.lovingeasttennessee.com/agents/269187/Deanna+Dellinger) February 24 2025 [0 comments](https://www.lovingeasttennessee.com/blog/269916/Options+Like+Buydowns%2C+Arms%2C+Or+Assumable+Mortgages+Could+Make+Homeownership+More+Affordable) How To Buy a Home Without Waiting for Lower RatesMany people are hoping mortgage rates will come down before they buy a home. But will that actually happen? According to the latest forecasts, [Read More](https://www.lovingeasttennessee.com/blog/269916/Options+Like+Buydowns%2C+Arms%2C+Or+Assumable+Mortgages+Could+Make+Homeownership+More+Affordable) [  Chat With Me ](https://m.me/deanna.dellinger)  Original text Rate this translation
