The Social and Economic Benefits of Homeownership

March 13, 2015 | by Katie Claflin

Categories: First Time Buyer, Home Rehabilitation/Repairs, Homeownership

For many families, there are financial benefits to owning a home, including tax deductions (the topic of an earlier blog post) and building wealth through home equity.

But did you know that there are social and economic benefits to owning a home as well? These benefits are harder to quantify, but should still be considered when deciding if homeownership is right for you and your family.

According to an article published by the National Association of Realtors (NAR), stable housing created by homeownership offers the following benefits:

  • Improved children’s educational achievement.  Families who own a home tend to be more financially stable, creating opportunities for parents to focus on positive parenting behavior that can lead to improved educational outcomes.
  • Improved civic participation. Homeowners have a great financial stake in their neighborhoods, leading them to volunteer more and be more politically active.
  • Improved health outcomes for families. Homeowners tend to report greater happiness and more control over their lives, leading to better physical and psychological health.  Owner-occupied housing also tends to be better maintained than rental housing, leading to improved safety and health.
  • Reduced neighborhood crime rates. Because crime rates can negatively impact property values, homeowners have more incentive to create and participate in voluntary crime prevention programs.

And there’s more.  NAR also studies and reports the economic impact of buying a home.   According to their analysis, one job is created for every two homes sold.

For additional research conducted on the social and economic benefits of homeownership, click here.


On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.

Comments

Liv Smith

I didn’t know that buying a house could actually help with reduced crime rates in the neighborhood since everyone tries to keep their property value. My daughter has been thinking of moving out of her apartment and buying a house with her husband so I wanted to see what kind of benefits there were to it besides more space. I’m glad I found this article on the benefits of homeownership, it was really helpful.

Laura Ross

Hi David, please contact our Homeownership Hotline at 877-508-4611 for assistance.

David Medrano

First time Home buyer, would like info on grants/assistance for help with Weatherizing my home. I am a Senior Citizen & would like info on repair assistance also, (painting; outside repairs; etc.
Cell phone 210-254-8080. Donot have a computer @home, have to use local library computer. Call me if possible.
Thanks.

Gerty Gift

I liked what you said about homeowners being happier and have more control over their lives. I have always been a renter and it’s been a bit of a struggle feeling like I never really have a home. It’s nice to feel secure in where I’m living now and I hope that my sister will find that when she buys her first home.

Becca Holton

Katie, that was interesting how owning a home can affect your children. My husband and I don’t have any children right now. However, in the future, it sounds wonderful to be able to focus on positive parenting behavior because we own a house.

Amanda Drew

Education is very important for me, so I like how you say that owning a home lets parents focus on helping their children succeed in their schooling. My husband and I had our first child about three months ago, and we’re starting to realize that the place we’re at just won’t cut it. We’ll have to find homes for sale to give our daughter that stability.

Joe Kazan

Ownership of home is a good sing of dependable and beautiful future. It ensures bright future of children, acceptance of good status in the society, interest in participation in voluntary work of society, financial strength and health benefits. According to National Association of Realtors (NAR), they have shown a ratio in one of their studies that one job : two home sold.

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