Homeownership Continues to Fuel Tremendous Wealth Gains
Home prices have accelerated at a record pace over the last decade, bringing growing wealth to households from long-term homeownership.
From 2010 to 2020—across income groups and metro areas—the total housing wealth for middle-income households grew by $2.1 trillion, according to a new report from the National Association of Realtors, Housing Wealth Gains for the Rising Middle-Class Markets.
According to the report, a homeowner who purchased a typical existing single-family home 10 years ago at a median sales price of $162,600 is likely to have seen an increase in housing wealth of $229,400. Of that wealth gain, 86% can be attributed to price appreciation. Home prices have continued to grow over the last decade. The price for the median single-family existing home has risen at an annual pace of 8.3% from the fourth quarter of 2011 through the fourth quarter of 2021, NAR reports.
That said, appreciation began to accelerate in 2020 in response to a lack of inventory, and increased further in 2021 in response to inflation and supply chain shortages. The average homeowner nationwide gained about $55,300 in equity in 2021, this according to a new analysis released by CoreLogic, its latest quarterly “Homeowner Equity Insights” report.
While homeowners in Western states have seen some of the largest equity gains by dollar value, states like our own, Ohio have seen year over year gains of $24,000 on average. As is well known, all real estate is local and appreciation rates vary dramatically across the state, from one city to the next, and even among suburbs and towns. For example while home’s in Pickerington appreciated at a rate of 25.9% in 2021, appreciation topped out at just 4.9% in Grandview Heights.
Owning a home continues to be a proven method for building long-term wealth. Home values generally grow over time, so homeowners begin the wealth-building process as soon as they make a down payment and begin to pay down their mortgage.
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please give us a call and we’d be happy to assist you!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley 43209 Columbus 43201 43206 43214 43215 Delaware 43015 Downtown Dublin 43016 43017 Gahanna 43219 43230 Grandview Heights 43212 Galena 43021 Hilliard 43026 Lewis Center 43035 New Albany 43054 Pickerington 43147 Polaris Powell 43065 Upper Arlington 43220 43221 Westerville 43081 43082 Worthington 43235
