93% of Americans Believe a Home Is a Better Investment Than Stocks

93% of Americans Believe a Home Is a Better Investment Than Stocks


The data show how strongly Americans believe in homeownership as an investment.

That belief is warranted.

Let’s connect to discuss.

Presented as a public service by:

Joe Peters of Coldwell Banker April 15, 2021


A recent Survey of Consumer Finances study released by the Federal Reserve reveals the net worth of homeowners is forty times greater than that of renters. If you’re wondering if homeownership is a good investment, the study clearly answers that question, and the answer is yes.

Do Americans believe a home is a better investment than stocks?

In a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York notes that 93.3% of Americans believe buying a home is definitely or probably a better investment than buying stocks.

Here’s how the results break down:93% of Americans Believe a Home Is a Better Investment Than Stocks | MyKCMThe survey also shows a wide range of reasons why Americans feel that way (respondents were able to pick more than one answer):93% of Americans Believe a Home Is a Better Investment Than Stocks | MyKCM

Bottom Line

The data show how strongly Americans believe in homeownership as an investment. That belief is warranted. The Liberty Street Economics blog put it best by saying:

“Housing represents the largest asset owned by most households and is a major means of wealth accumulation, particularly for the middle class.”

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Joe Peters of Coldwell Banker April 15, 2021 
 

Some Buyers Prefer Smaller Homes

Some Buyers Prefer Smaller Homes


Today’s housing market favors homeowners who are ready to sell their houses and make a move.

If you’re thinking about downsizing this year, let’s connect to discuss your options in our local market.

Presented as a public service by:

Joe Peters of Coldwell Banker April 13, 2021


Over the past year, we’ve had plenty of opportunities to reflect on what we consider most important in our lives. The place we call home is one of the biggest things many of us are reevaluating. George Ratiu, Senior Economist at realtor.com, shares:

“The very nature of the pandemic, through the health implications, social distancing, and need to isolate, has really brought a central focus on the importance of home for most Americans…In a sense, it has elevated real estate markets as a centerpiece of our lives.”

For some, this has spurred an interest in making a move to a home that better suits our changing needs. In a recent study on today’s homebuyer preferences, the National Association of Home Builders (NAHB) states:

“When asked more specifically how the pandemic may have impacted their preference for home size21% or about 1 out of every 5 buyers, do want a larger home now as a direct result of the health crisis, while another segment – 12% – would prefer a smaller one instead.”

While you might expect more time at home to lead to a need for more space, it’s interesting that a significant portion of homeowners actually want less. For those who own larger homes right now and have a desire to move, today’s housing market is full of opportunities. Danielle Hale, Chief Economist at realtor.com, explains:

“In a real estate market that is tipped in the favor of sellers, boomers and older homeowners are really the ones holding the cards…Those who are selling homes can use the profits to help them buy new ones.”

As a homeowner today, you likely have equity that can be put toward the purchase of your next home. With the equity growth homes have seen over the past year, you may have more than you think, which can help significantly as you make a move into your next home. According to a report from the National Association of Realtors (NAR):

“Home sellers cited that they sold their homes for a median of $66,000 more than they purchased it. Sellers 22 to 30 years gained the least at $33,400 in equity compared to sellers 66 to 74 years gained $100,000 in equity as they likely had lived in their homes for a longer period of time.”

Despite the benefits of growing home equity, some homeowners are still hesitant to move and could be considering remodeling or making changes to their current space instead. However, if you’ve thought about aging in place rather than downsizing, you may want to reconsider. The U.S. Census Bureau points out:

Of the nation’s 115 million housing units, only 10% are ready to accommodate older populations.”

If your house is no longer the best fit for your evolving needs, it may be time to put your equity to work for you and downsize to the home you really want.

Bottom Line

Today’s housing market favors homeowners who are ready to sell their houses and make a move. If you’re thinking about downsizing this year, let’s connect to discuss your options in our local market.

Link to my latest Monthly Market Updates

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Joe Peters Buying Guide April 13, 2021

Joe Peters Millennial Home Buying Guide April 13, 2021

Joe Peters Selling Guide April 13, 2021

 

Joe Peters of Coldwell Banker April 13, 2021 

Hunterdon and Somerset named as two of the healthiest counties in New Jersey

Here’s where N.J.’s healthiest people live. See where your county ranks.

Hunterdon and Somerset offer some of the healthiest living in New Jersey

This is because of their access to medical care, their educational achievement, and their active lifestyle.

Falls Last Gasp in Morris County

Fall finishes up its last colors on Patriots Path in Lewis Morris Park in Morristown. Morris County is ranked the healthiest county in New Jersey, according to the latest analysis by the Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute. ADVANCE SUNDAY October 31, 2020Amanda Brown| For NJ Advance Media

Reposted from NJ.com

Morris, Hunterdon and Somerset county residents are more likely to be the healthiest people in New Jersey because of their access to medical care, their educational achievement and their active lifestyle, according to an analysis the Robert Wood Johnson Foundation released Wednesday.

The annual ranking of healthy counties in America is based on a data analysis by the University of Wisconsin Population Health Institute that takes into account factors such as lifestyle habits, crime, disease and mortality rates, educational and financial success and the availability of doctors, parks and grocery stores

The foundation encourages elected officials to use the information to make policy decisions that will promote economic stability and healthy living, and make grants available to carry out this mission, Robert Atkins, the foundation’s director for New Jersey Health Initiatives.

Most counties at the top or bottom of the list have held those rankings since the first report was released in 2010. Cumberland, Salem and Camden counties, home to pockets of poverty and unemployment, consistently have been at or close to the bottom.

In an effort to urge community leaders and the public to look beyond the “winners and losers” angle of the report, the authors classified each county in four groups based on their scores, to help frame a conversation around what opportunities exist locally to make communities healthier, Atkins said.

“The Robert Wood Johnson Foundation has been advocating for thinking about the social determinants of health,” Atkins said. “We can’t do much when someone already has diabetes…but we can increase how walkable a community is and improve access to healthier foods. It has to go beyond (the availability) of nurses and doctors — there has to be safe, affordable housing and child care providers.”

“Your zip code matters,” he added

The rankings are based on data largely from 2019 and 2018, predating the coronavirus pandemic that has claimed the lives of 24,000 New Jerseyans since March 2020. Next year’s report will reflect the pandemic’s impact. But the authors note that the historical data “provide the context for the systemic inequities that have influenced the health of communities long before COVID-19.”

State and national data show the pandemic has disproportionately affected people who hold lower-paying service jobs, for instance. “These gaps in opportunity have to be addressed if we want a fair, inclusive and equitable recovery from the pandemic,” according to the report.

 

Here are the rankings, from least healthy to healthiest:

The Least-Healthy Counties

The premature death rate — measured by the number of years lost by people who do not live beyond age 75 — is very high in these five counties compared to the statewide average. There are notably more smokers and sedentary people, as well as people who do not complete high school or obtain a GED. Violent crime is at least twice the statewide average.

  • Cumberland County
  • Salem County
  • Camden County
  • Atlantic County
  • Essex County

The Lower-Middle Range Counties:

Smoking and premature death rates are higher in these five counties than the statewide average. Few commonalities exist across the group. The teen birth rate, for instance, is higher than the statewide average in Cape May, Mercer and Passaic counties, but is below the average in Gloucester and Burlington counties. There is a severe shortage of mental health providers in Cape May, Passaic and Gloucester but not so in Burlington and Mercer counties compared to statewide per capita data.

  • Cape May County
  • Gloucester County
  • Passaic County
  • Burlington County
  • Mercer County

The Higher-Middle Range Counties:

Exercise opportunities are ample in these six counties, so not surprisingly fewer people are sedentary. But only Monmouth County residents had their pick of more primary care doctors and mental health providers than the statewide average. Only Hudson and Union counties had fewer residents complete high school compared to the statewide average. These two urban counties also reported more severe housing problems, such as overcrowding, excessive rent cost or a lack of kitchen or plumbing facilities than the state average.

  • Warren County
  • Ocean County
  • Hudson County
  • Union County
  • Sussex County
  • Monmouth County

Healthiest Counties:

These five counties have been at or near the top of the rankings every year. Residents in these counties are less likely to smoke, be obese and have better access primary care doctors and dentists than the statewide average. They exceed the average high school graduation and college attendance rates. They live longer lives, and reside in communities where child poverty and crime are the lowest in New Jersey. Every county but Middlesex reported more binge-drinkers than the statewide average.

  • Middlesex County
  • Bergen County
  • Somerset County
  • Hunterdon County
  • Morris County

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Joe Peters Buying Guide April 11, 2021

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Joe Peters of Coldwell Banker April 11, 2021 

Multigenerational Housing Is Gaining Momentum [INFOGRAPHIC]

Multigenerational Housing Is Gaining Momentum [INFOGRAPHIC]


If your house is feeling a little cramped with the addition of adult children or aging parents, it might be time to consider a move-up into a multigenerational home that better suits your changing needs.

With benefits that include a combined homebuying budget and shared caregiving duties, an increasing number of households are discovering the value of a multigenerational home.

With such high demand for houses today, now is a great time to sell so you can upgrade to a multigenerational home that may better suit your evolving needs.

Presented as a public service by:

Joe Peters of Coldwell Banker April 9, 2021


Some Highlights

  • If your house is feeling a little cramped with the addition of adult children or aging parents, it might be time to consider a move-up into a multigenerational home that better suits your changing needs.
  • With benefits that include a combined homebuying budget and shared caregiving duties, an increasing number of households are discovering the value of a multigenerational home.
  • With such high demand for houses today, now is a great time to sell so you can upgrade to a multigenerational home that may better suit your evolving needs.

 

Link to my latest Monthly Market Updates

Download Guides Here
Joe Peters Buying Guide April 9, 2021

Joe Peters Millennial Home Buying Guide April 9, 2021

Joe Peters Selling Guide April 9, 2021

 

Joe Peters of Coldwell Banker April 9, 2021 

Homeownership Is Full of Financial Benefits

Homeownership Is Full of Financial Benefits


The idea of homeownership as a direct way to build your net worth has met the test of time.

According to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone.

Let’s connect if you’re ready to take steps toward becoming a homeowner.

Presented as a public service by:

Joe Peters of Coldwell Banker April 2, 2021


A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today’s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:

  • 88% – a better chance of saving for retirement
  • 87% – the best investment plan
  • 85% – the chance to be better off financially
  • 85% – the chance to build up wealth

Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget.

Does homeownership actually give you a better chance to build wealth?

No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a financial asset.

Last fall, the Federal Reserve released the Survey of Consumer Finances, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters).

The difference in net worth between homeowners and renters has continued to grow. Here’s a graph showing the results of the last four Fed surveys:Homeownership Is Full of Financial Benefits | MyKCMThe above graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.

Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. Here are the findings:Homeownership Is Full of Financial Benefits | MyKCMOthers may think homeowners are older and that’s why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals:

“The ability to build equity puts homeowners far ahead of renters in terms of household wealth…the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.”

Homeowners 65 and older have 47.6 times greater net worth than renters.

Bottom Line

The idea of homeownership as a direct way to build your net worth has met the test of time. Let’s connect if you’re ready to take steps toward becoming a homeowner.

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Joe Peters of Coldwell Banker April 8, 2021