Does home-ownership matter? Who cares if we are a renter nation? Those are good questions, most would agree that the vast majority of wealth building, equity building, for the average American occurs through the payment of their monthly mortgage along with yearly appreciation.
The way it always worked was you bought a small starter house, paid down the mortgage a bit, the value of your home increased, you sold the house after making a tidy profit and took the money to purchase a bigger home. This was repeated two or three times and boom when you were retirement age you had several hundred thousand dollars of equity sitting in your home. You then sold that home took the money and retired to Florida or Arizona and life was good.
Well 2008 changed all that for a lot of people, however, I still say that purchasing a home, paying down the mortgage each month, selling it and moving to a bigger home is not only possible but not that difficult to do. In fact, I would guarantee that in 20 or even 10 years the house you are currently living in will appreciate as long as you keep the interior and exterior in good shape and put some money into your home so it doesn’t become dated.
Bottom line, owning a house is a great way to build long term equity. Owning in most cases allows you to deduct the interest paid on your mortgage so there are tax advantages. But the best reason to own a home is it’s a wonderful asset to have. When you rent someone else tells you what you can and can’t do in the home. When you own its all yours!