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Community Benefits
Research series: How does homeownership contribute to social and civic engagement?pdf (Habitat for Humanity, Jun. 2023)
“People with low incomes have generally been less civically engaged than the population at large. Because of this, they have less political and social influence and less ability to advocate for policies and issues affecting them. Homeownership motivates increased civic engagement regardless of income level, so increasing opportunities for homeownership among people with low incomes will increase their political and social involvement.”
Homeownership in the Black Community is a Mental Health Issue (Technically, Sep. 14, 2022)
“Homeownership in the Black community is a mental health issue: For too long, we have lived in spaces that are not in our control,” she said. “We don’t realize the burdens we’re carrying because we don’t control the spaces we live in. Your baby kicked a hole in a wall and you’re scared to death that you might be evicted because we are seen as ‘thugs.’ Kemp said while Blacks make up roughly 6% of the city’s population, nearly all of the defendants in eviction court are Black or brown — a story explored in-depth in Matthew Desmond’s 2016 bestseller “Evicted,” which examined poor renting families in Milwaukee.”
How Homeownership Changes You (The Atlantic, Apr. 11, 2022)
“Committing to owning a house can also tie people more closely to a place. Nelson, who works for a tech start-up, told me that after moving frequently during childhood and hopping from rental to rental in their 20s, they find homeownership “very calming” at age 31. It has also led them to wonder, “Now that I’ve settled and claimed this little piece of land, what am I going to do to invest in my community?” One of Nelson’s answers has been to devote about 10 percent of their disposable income to local nonprofits.”
How Expanding Housing Supply and Supporting Demand Can Increase Homeownership: Policies to Improve Economic Mobility and Wealth Building for All (Urban Institute, Mar. 11, 2026)
“Homeownership has been one of the most effective ways to build wealth in the US for generations. Studies estimate that each year of homeownership increases net wealth by about $6,800 to $10,000. Homeownership also has positive social impactspdf on educational achievement, health, crime reduction, and civic participation—all of which benefit communities. But in recent years, high home prices, interest rates, and down payments relative to incomes have kept renters from moving into homeownership.
To support prosperity for all, public and private leaders can pursue strategies that expand homeownership and valuation in their communities by: increasing the supply of low-cost homes in high-opportunity areas; and addressing unmet demand and decreasing barriers (e.g., through purchasing assistance and favorable repayment terms). Through these interventions, they can unlock homeownership’s wealth-building potential, particularly for Black and low-income households that have historically faced specific purchasing barriers.”
Social Benefits of Homeownership and Stable Housing (National Association of REALTORS®, Dec. 2016)
In 2016, the National Association of REALTORS® Research Division released a report entitled “Social Benefits of Homeownership and Housing.” This paper serves as a review of existing literature regarding the ways in which homeownership affects educational achievement, civic participation, health, crime, public assistance, property maintenance and improvement.
Family Benefits
Homeownership Accelerates Generational Wealth? (realtor.com, Mar. 12, 2026)
“Homeownership remains a cornerstone of the American dream. Buying a home not only provides stability and a place to call one’s own, but it also serves as one of the most reliable paths to building wealth in the United States. Over time, accumulated housing wealth can shape not only a household’s financial security, but also the opportunities available to the next generation, affecting who can buy, when they can buy, and how much wealth they have time to build.”
What Home Ownership Has to do With Healthy Families (Institute for Family Studies, Nov. 28, 2022)
“Owning a home can clearly help families and children. But it’s not the only type of ownership that can be beneficial. The satisfaction, stability, quality, freedom, and control that come from owning a home are also natural results of having ownership of other important aspects of life, including education, employment, healthcare, and retirement savings.”
Consumers’ Homeownership Aspirations Remain High Despite Higher Home Prices and Interest Rates (Fannie Mae, Jun. 6, 2023)
[A] “survey asked consumers to consider the financial and non-financial (or lifestyle) benefits derived from either owning or renting. Respondents overwhelmingly indicated that owning a home was preferable to renting in every aspect listed. The top three were having control over what you do with your living space (94%) to having a sense of privacy and security (91%) and having a good place for your family or to raise your children (90%) – all of which were essentially unchanged from the 2020 survey. "Having less stress" brought up the rear at a still-commanding 66%, up 10 percentage points from 2020.”
Stable Housing is Foundational to Children’s Well-Being (Center on Budget and Policy Priorities, Feb. 15, 2022)
“A broad body of research links homelessness, housing instability, overcrowding, and poverty to adverse effects on young children’s health, development, and future school performance. Frequent, prolonged, or acute hardship in early childhood can permanently affect development of the brain and related systems. Housing instability creates significant stress for all members of the household and can strain relationships between adults and children or other adults.”
Financial Benefits
What Are the Tax Benefits of Homeownership? (Tax Policy Center, Updated Jan. 2024)
“Homeowners may deduct both mortgage interest and property tax payments as well as certain other expenses from their federal income tax if they itemize their deductions. In a well-functioning income tax, all income would be taxable and all costs of earning that income would be deductible. Thus, in a well-functioning income tax, there should be deductions for mortgage interest and property taxes. However, our current system does not tax the imputed rental income that homeowners receive, so the justification for giving a deduction for the costs of earning that income is not clear.”
Rethinking Homeownership as “the American Dream” (Urban Institute, Jun. 26, 2023)
“According to Black Knight’s Home Price Index, the average seasonally adjusted US home price increased nearly 80 percent from April 2015 to April 2023. Homeowners realized significant wealth increases while renters were left out.”
3 Ways Homeownership Can Build Wealth (Forbes, Aug. 3, 2022)
Even with market ups and downs, homes do generally appreciate in value, especially in the long run. Though the exact amount depends on location, size of home, etc., the average appreciation rate nationals is “around 3.5% to 3.8% per year.” Paying into your mortgage, versus a landlord’s, builds equity. Home ownership also opens you up to new tax deductions, among other, more intangible, benefits.
Owning vs. Renting: The Benefits of Residential Stability (Housing Studies, May 2022)
“In housing research, owning, as compared to renting, is generally depicted as more desirable and associated with better outcomes. This paper explores differences in outcomes between owners and renters in 25 European countries and whether these differences are systematically smaller in countries in which owners and renters have more similar levels of residential stability (smaller tenure length gap). The results indicate that the direction of the relationship between tenure type and the selected outcomes is largely similar across countries. Owners generally exhibit more desirable outcomes (including life satisfaction, civic participation, educational outcomes for children, and physical and mental health).
8 Financial Benefits of Homeownership: A Beginner’s Guide for First-Time Buyers (Redfin, Jan. 6, 2026)
“For many first-time home buyers, purchasing a home is one of the biggest financial decisions they will ever make. But beyond having a place to call your own, homeownership can offer financial benefits that renting often can’t, including equity growth and greater stability in monthly housing costs. In this Redfin guide, we highlight key benefits of homeownership that matter for new buyers. You will learn how owning a home can build equity, support long-term wealth, and create more predictable housing costs.”
Homeowners Are 43 Times Wealthier Than Renters (realtor.com, Jun. 10, 2025)
“The typical U.S. homeowner currently has a net worth of $430,000, according to the most recent Federal Reserve Survey of Consumer Finance. In comparison, the net worth of the average renter is just $10,000. To put it simply—the average homeowner is 43 times wealthier than the typical renter.”
Exploring Housing Affordability: Where Mortgage Payments are Cheaper than Rent Across the U.S. (National Association of REALTORS® Economists’ Outlook, Nov. 24, 2025)
“To better understand where homeownership may still be attainable, we wanted to identify areas where monthly mortgage payments are lower than rent. We analyzed 215 Metropolitan Statistical Areas (MSAs), calculating median monthly mortgage payments and comparing them to fair market rents determined by the U.S. Department of Housing and Urban Development (HUD). Fair market rent reflects the cost of a moderately priced rental unit within a specific area and is based on data from the most recent American Community Survey (ACS). While three-bedroom homes are the most popular to buy, our analysis focused on that property type.”
eBooks & Other Resources
Homeownership Built to Last (eBook)
A Place Called Home (eBook)
Chasing the American Dream (eBook)
Wealth and Homeownership (eBook)
Homeownership Education Series (Freddie Mac)
Home Ownership Matters (National Association of REALTORS®)
Benefits of Homeownership [Infographic] (National Association of REALTORS®)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Social Benefits of Homeownership and Stable Housing (National Association of REALTORS®, 2006 p. 16) HD 7293 N21
Low-Income Homeownership: Examining the Unexamined Goal (Brookings Institution Press, 2002)
The Economic Benefits and Costs of Homeownership (Research Institute for Housing America, May 2001)
Social Benefits and Cost of Home Ownership (Research Institute for Housing America, May 2000)
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