You probably already know that…
- there are tax benefits to owning a home.
- buying a home is cheaper than renting in the long term.
- homeowners pass on more wealth to their children.
But beyond economic and financial benefits, there are several social benefits to owning a home. Continue reading to find out what benefits you might experience after buying your first home!
1. Educational Achievement
Access to economic and social opportunities is higher in neighborhoods with high rates of homeownership.
Studies have shown that teenagers are more likely to stay in school, less likely to have a teenage pregnancy, and have higher future earnings when their parents were homeowners.
This can potentially be attributed to behavioral characteristics associated with homeownership, such as management skills, financial skills and a greater sense of responsibility passed down from their parents.
Additionally, it has been found that moving can have negative educational effects on children, and those who move are less likely to experience neighborhood stability, which tends to increase quality of life.
2. Civic Engagement
Homeowners are more likely to be in their home long-term and have a sense of stability, leading to involvement in the community.
Homeowners feel they have a higher stake in the community, and are more likely to volunteer than renters. They also tend to be more politically aware due to the increased community engagement, reflected in a 1998 study that found 77% of homeowners would vote in local elections, while only 52% of renters were likely to vote.
This creates a circle-back effect, where the homeowners’ involvement in the neighborhood increases the neighborhood’s stability and its ability to give greater benefits back to the homeowner.
3. Lower Crime Rates
Since crime rates can impact property values on a neighborhood, homeowners are more incentivized to deter crime and focus on crime prevention in their neighborhoods.
As a result, homeowners are less likely to become a victim of a crime (either property or violent crimes).
Stable neighborhoods with higher rates of homeownership are more likely to have reduced crime, while areas where homeownership is low there is higher social disorganization.
Homeowners have been found to be 2.5-3.1% more likely to report having good health, according to a 2014 study.
Since homeowners have an economic interest in their properties, they have incentive to maintain their homes at a higher standard, creating better living conditions, which leads to better physical health conditions.
Health benefits do not stop at the physical level, however—homeowners report higher life satisfaction, self-esteem, and perceived control over their lives than renters. These factor into greater psychological health for homeowners.
Become a Homeowner
Hopefully this list was informative and inspiring—owning your own home can be extremely empowering and acts as a stabilizing factor in anyone’s life, from singles, to parents, to children.
If you’re interested in learning more about the homebuying process, check out our Homebuyer Education classes or take a look at our available properties — we’d love to help make your American Dream come true!
*All statistics and studies can be found in a report done by the Research Division of the National Association of Realtors
Author: Jillian Branchaud, Community Engagement AmeriCorps Member