Improving affordable homeownership creates benefits beyond just housing. In the U.S., it leads to economic stability, better education, more community involvement, improved health, and a smaller environmental impact.
Highlights from recently released research follows. Click here to read the full brief.
Wealth and Financial Stability
• Homeowners in the U.S. have about 400% more net wealth than renters with similar backgrounds and incomes. Home equity makes up 34.5% of total wealth for U.S. households.
• Owning a home is linked to higher wealth. Each year of homeownership typically adds about $9,500 to net wealth.
• In 2019, lower-income households had much lower net wealth ($9,300) than higher-income ones ($1,589,300). Black ($24,100) and Hispanic/Latinx ($36,050) households also had less wealth than white households ($189,100). Home equity is a bigger part of the wealth for low-income and minority households.
Civic and Social Engagement
• Homeowners are more likely to vote in local elections than renters, especially in low-income urban areas with higher disadvantages.
• Homeowners are 1.3 times more likely than renters to join neighborhood groups and civic associations, even in low-income areas.
Environment
• Weatherizing older single-family homes can cut energy costs for low-income families by 12.4% in the first year. Low-income households spend 7.2% of their income on energy, while others spend only 2.3%.
Education
• Children from low-income homeowner families are 11% more likely to graduate from high school and 4.5% more likely to finish college than children of renters.
• Homeowners can use home equity to help pay for their children’s education. A $10,000 increase in housing wealth raises college attendance chances by 14% for lower-income families.
Health
• Reducing housing costs for families who spend over half their income on housing helps them afford better food and healthcare and reduces overcrowding, which can limit the spread of illnesses.
Are you looking for a way to volunteer that makes a difference? Click here
