The American Dream is a term that has been used for decades to describe the idea of success, freedom, and prosperity that is available to everyone in the United States. For many people, owning a home is a significant part of achieving that dream. In this blog post, we will explore how owning a home can help build the American Dream, by creating intergenerational wealth and providing long-term financial stability.
The American Dream is interpreted differently and personally by each person. But for many, it’s associated with a sense of achievement, freedom, and prosperity. Having a home of your own can help with all of these things.
Which accomplishments, according to the respondents of a recent Bankrate survey, best represent the American Dream? The responses demonstrate that owning a home is still important to a large number of Americans today (see graph below):
The graph demonstrates that owning a home is more important than other significant life events like retirement, having a fruitful career, and receiving a college degree.
A recent MYND report sheds some light on why so many people value homeownership. It discovers:
“. . . nearly two-thirds of Americans (65%) see homeownership as a means of building intergenerational wealth.”
This is due to the fact that when you own a home, your equity (and net worth) increase over time as you pay off your mortgage and as home prices rise. This may be a crucial element in creating wealth that will last across generations and long-term financial stability.
According to a Fannie Mae report, owning a home can significantly improve your quality of life:
“Most consumers (87%) believe owning a home is important to ‘live the good life.’ . . . Notably, significantly more see ‘having less stress’ as a benefit achieved by owning than renting.”
This may be true especially today because when you have a fixed-rate mortgage and own a home, you stabilize what is probably your largest monthly expense (your housing cost), which helps offset the effects of inflation-related price increases.
What Does This Mean to You?
Given the higher mortgage rates and home prices of today, it might seem difficult for you to purchase a home, but if the time is right for you, know that when you do so, amazing benefits are waiting for you at the end of your journey.
The American Dream means different things to different people. Still, for many, it involves a sense of success, freedom, and prosperity. Owning a home can be a significant part of achieving that dream by providing intergenerational wealth, countering rising costs and inflation, and providing long-term financial stability. By investing in a home, you can create a solid foundation for future success and provide a safety net for those who come after you.