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Philly’s Black Homeownership Has Been Steadily Declining, Solutions to Structural Barriers Could Help (Philly Voice, Dec. 14, 2021)
A new report from the Federal Reserve Bank of Philadelphia highlighted the declining home ownership rate for Black Philadelphians, and unequal mortgage lending is the number one culprit. According to the report, only Black “residents in the highest income quartile or with the highest level of traditional education saw a higher homeownership rate compared to white residents within those same groups.” Like many cities, Philadelphia experienced a large “white flight” in the 1960s, and still experiences redlining and discriminatory lending practices.
Investing in Communities: Social and Personal Benefits of Homeownership (Source Weekly, Jan. 5, 2022)
“To understand the impact on a community when there are roadblocks to ownership, it's significant to look at the personal and social benefits of homeownership. A home will provide an individual a stronger sense of security, belonging and attachment to the home and the community. When people have a place that is their own, it can be conducive to opportunities for growth physically, mentally and emotionally. Being a homeowner is a source of pride and worth, a tool for advancement.”
Unconquerable? Homeownership and Local Political Participation (Devin Edwards, Apr. 9, 2020)
“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). However, when looking at the relationship between outcomes and country level differences in tenure length gap, findings suggest that renters have outcomes that are more similar to owners in countries in which tenure length gaps are smaller.”
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.
Credits for First Time Homebuyers (Investopedia, Dec. 3, 2021)
“The most beneficial tax break for homebuyers is the mortgage interest deduction limit of up to $750,000. The standard deduction for individuals is $12,550 in 2021 (increasing to $12,950 in 2022) and for married couples filing jointly, $25,100 (increasing to $25,900 in 2022.)14There are other tax breaks that an individual can claim depending on the details of the home being bought and the individual.”
Bank of America’s 2021 Homebuyer Insights Report Looks at How Americans Are Making Homeownership a Reality in Today’s Competitive Market (Bank of America, 2021)
According to the Bank of America 2021 Homebuyer Insights Report, first-generation homebuyers were taught the values of homeownership by their parents, and 75% of them were taught the importance of building good credit. 69% of first time homebuyers felt that buying a home was more important than ever in the past year, and 73% say that the safety and security homeownership bring has increased.
The Emotional and Rational Benefits of Purchasing a Property (Forbes, Sep. 17, 2021)
“Covid-19 gave real estate professionals an opportunity to remember the importance of homeownership from a more personal perspective. Do you recall returning home after a long vacation and inhaling as much air as your lungs could take before letting out a loud sigh? You're at ease. You’re at home. You have a sense of security. Your home is your shelter to share all emotions, from the most incredible happy moments to the stressful, sad situations.”
The Health Benefits of Homeownership (Habitat for Humanity, Jan. 2019)
“There is a strong positive relationship between living in poor housing and a range of health problems, including respiratory conditions such as asthma, exposure to toxic substances, injuries and mental health. Homes of owners are generally in better condition than those of renters. Increases in household wealth are associated with better health outcomes for homeowners. Low-income people who recently became homeowners report higher life satisfaction, higher self-esteem, and higher perceived control over their lives.”
Mothers’ Homeownership and Children’s Economic Success 20 Years Later Among a Sample of US Citizens (Children and Youth Services Review, Apr. 2019)
While homeownership certainly does not guarantee a stable or emotionally fulfilling childhood, many studies do point to large correlations in homeownership and familial stability. In the United States, homeownership is the largest contributor to familial wealth. According to a study from Haurin, Parcel, and Haurin, homeowning parents are usually able to provide better emotional support to their children due to lack of stress, which “enhances their children’s cognitive ability and reduces behavior problems.”
Single Family Homeowners Typically Accumulated $225,000 in Housing Wealth Over 10 Years (RISMedia, Jan. 13, 2022)
“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about 10 times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage. At the national level, a homeowner who purchased a single-family existing home 10 years ago would have gained $225,000 in home equity if the home were sold at the median sales price of $363,100 in 2021 Q3.”
Owning is Cheaper Than Renting in Many Parts of the U.S. (Axios, Jan. 11, 2022)
To rent or to own? The age old question is often based not on actual affordability, but perceived affordability. Purchasing a home can be a daunting thought, especially saving up for the down payment, but owning is actually less expensive than renting in many parts of the United States. The divide is found mostly between suburban and urban areas, with owning almost always proving the cheaper option major American cities.
Key Elements of the U.S. Tax System (Tax Policy Center, May 2020)
“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.”
Homeownership and Wealth Accumulation for Low-Income Households (Journal of Housing Economics, Mar. 2020)
“One of the justifications for federal involvement in the homeownership market is that it provides one of the few ways that low-income households can accumulate wealth. To date, the evidence on this claim is mixed due to the lack of a framework that allows for an evaluation of the causal impact of homeownership on wealth accumulation. We make up for this deficit by using the 1984–2013 waves of the Panel Study of Income Dynamics that allows us to use a household-level fixed effects estimator to focus on how wealth changes for households that shift their tenure status from renting to owning.”
eBooks & Other Resources
Homeownership Education Series (Freddie Mac, 2021)
Home Ownership Matters (National Association of REALTORS®, 2021)
Benefits of Homeownership [Infographic] (National Association of REALTORS®, 2017)
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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