Strong home ownership leads to an enriched social community.
Some of the earliest shelter building may have been as early as 400,000 years ago, with signs of actual “home décor” showing up as early as 100,000 years ago. Today, housing and related services make up approximately 16.2% of our Gross Domestic Product (GDP – congress.gov) and far surpass all other debt categories, with an approximate $13 trillion of outstanding mortgage debt.
While that number seems scary, I must immediately follow that up with an estimated $35 trillion of homeowner equity according to the St. Louis Federal Reserve, making it one of the largest categories of net worth for the average American.
The numbers can capture our attention and speculation of future rates and values seem to dominate the headlines. However, the purpose that the original hominins began to build shelters was not financial. This month, I’ve decided to take a break from the numbers and in honor of June’s National Home Ownership Month, focus on the top non-financial reasons the modern hominin chooses indoor living.
Stability and Community
I’m sure we’ve all had that experience of making great connections here in Flagstaff, even friends, only to see economic opportunities take them elsewhere. It is part of life but does seem to have a higher rate of occurrence here in Flagstaff.
A National Realtor Statistic in a 2016 study shows that renters are 20% more likely to move location than homeowners. This staying power undoubtedly helps create stability for individuals and families but also for communities. Many social studies have found a strong correlation between residential stability and strengthened social ties.
This seems like a “Captain Obvious” type of observation, but I believe it’s maybe one of the most overlooked. The more stability and staying power that the individuals and families in our community have, the more participation we’ll have in everything from small neighborhood BBQs to clubs, larger community boards, activism, civic engagement, etc. Strong home ownership leads to an enriched social community.
Home ownership and Health
This topic can cover many fronts, from the psychological stability for parents and children that homeownership creates all the way then to the physical conditions created by ownership vs. renting. We’ve all heard the term “drive it like a rental” and studies actually support that homeownership tends to create a healthier habitat.
Homeowners tend to keep their homes in better repair and are more proactive about dealing with issues that could cause health concerns like respiratory conditions, exposure to toxic substances or actual injury. On the softer side of health, many studies sited in the 2016 Realtor Association findings show a strong correlation with mental health and educational outcomes for children.
With some reference to our first point, some studies show higher participation of homeowners in children’s organized activities, suggesting less screen time for kids. This is definitely not a blanket statement for all of those renting vs. owning, but the sense of belonging and the minimization of big life shifts – with moves, school changes, social group changes, etc. – are all certainly pros in the homeownership category for the physical and mental health of individuals and families.
YOUR LIFE, YOUR HOME, YOUR WAY
I actually created that phrase as the motto for my team more than a decade ago. I know it can sound cliché, but owning your home and the property surrounding it gives you an independence that can be immeasurable. I remember when my wife and I were expecting our first child and I painted the nursery while she was away for the weekend. Her reaction when she saw the room and the feeling of bringing home our newborn baby to our own home is a core memory for me.
I also, shamefully, will not admit to you how many speakers I have in my current home, as music is a passion of our family and being able to crank up the volume while cooking with my kids helps me melt away any stress of the daily grind. If I can wrap my head around it, I think it all really comes down to our own independence. It’s somehow ingrained in us to desire to do what we what, when we want and how we want and living outdoors or in a home owned by the landlord just doesn’t allow that same freedom of creativity for doing your life your way.
I hope the reader can understand these ideals in the light that they are shared. I express full empathy that “The American Dream” is harder to achieve than it has been in years past, but there are certainly more tools and resources available now than ever. I do think it is a dream still worth striving for and a dream our communities should work to keep accessible so the indoor living trend can continue for the next 400,000 years! FBN
By Chris Hallows
For additional information or to schedule an appointment visit ChrisHallows.Benchmark.us or call 928-707-8572. The Flagstaff location is 824 W Rte 66 Suite A-3.
Chris Hallows is the Branch Manager & Sr. Mortgage Advisor of Benchmark Mortgage Flagstaff. NMLS 306345 Ark-La-Tex Financial Services, LLC NMLS 2143 |Equal Housing Lender
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