Buying a House Could Be the Best Investment You Ever Make
Homeownership is the largest source of wealth for many. If you're facing home-buying hurdles, real estate agents who are Realtors and certified housing counselors can help you get there.


The path to homeownership can be bumpy. Buyers must withstand bidding wars, contingencies, complex tax laws and an array of market factors beyond most anyone’s control. Still, buying a house is typically the single best investment a family can make.
Homeownership is, in fact, the largest source of wealth creation in the United States, while the median net worth of the average American homeowner is more than 40 times that of the average renter.
A decision of this magnitude comes with a number of potential hurdles, and it’s immensely important to get the decision right. Certified housing counselors and agents who are Realtors can help ensure consumers do just that. The primary motivation for buying a home in the United States differs from person to person. For many, it's financial — an opportunity to grow home equity and lock in a stable monthly housing payment. For others, it's emotional — a chance to build roots, create stability and feel more connected to their community.
In Bankrate's March 2023 Financial Security survey, 74% of respondents ranked homeownership as a key component of the American dream.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A report released in April by the National Association of Realtors analyzed how homeowners across income levels have increased their net worth in recent years and decades. Between 2012 and 2022, the median value of homes owned by lower-income Americans climbed 75% — a gain of roughly $100,000. Middle-income homeowners saw their properties appreciate 68% over the same period — equivalent to a wealth increase of $122,000.
Today, home equity is the largest financial asset for American households in the middle three quintiles of the income distribution, accounting for between 50% and 70% of this group's total net worth.
Making a mortgage payment each month is, in many ways, comparable to contributing to a stable savings account. Homeowners chip away at their loan balance and increase their claim on the home's overall value in the process. Many Americans who bought a median-value home 10 years ago and stayed consistent with their monthly payments have already paid off over 20% of their mortgage.
Unfortunately, many Americans today feel that their homeownership dreams are beyond reach. Current homeowners may be celebrating the growth in the value of their homes, but aspiring buyers may view that widespread price appreciation as one more factor keeping them renting.
All Americans deserve the opportunity to achieve their homeownership dreams and build lasting wealth. To help make this possible — especially as housing markets across the country slowly become more buyer-friendly — prospective buyers can take advantage of several resources.
First-timers can benefit from connecting with a certified housing counselor. These trained agents with the U.S. Department of Housing and Urban Development can help prospective home buyers plan for future home purchases and get their finances mortgage-ready.
Agents who are Realtors can also help people navigate the home-buying process. They're uniquely positioned to leverage their knowledge of a local market, extensive networks and down payment assistance programs to open doors to affordable housing opportunities. It's no wonder nearly nine in 10 successful home buyers enlist the help of a real estate agent or broker.
There are also government loans and vouchers available through the Federal Housing Administration and the Housing Choice Voucher homeownership program.
Many states also have programs that create homeownership opportunities. Be sure to check your state's Housing Finance Agency for state-specific programs, information and advice.
Everyone deserves safe, quality housing at a price they can afford. Even when the market seems complex, challenging or overly competitive, prospective buyers can still obtain their own piece of the American Dream, capitalizing on the resources available through real estate professionals and the array of valuable programs they support.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Kenny Parcell (ABR®, AHWD, CRS, C2EX), a REALTOR® from Spanish Fork, Utah, is the 2023 President of the National Association of REALTORS®. Kenny is broker/owner of Equity Real Estate Utah and has sold more than 3,200 homes during his 25-year career. At the national level, Kenny served as NAR’s Vice President of Government Affairs in 2018. He was the REALTOR® Party RPAC Fundraising Liaison in 2017, Regional Vice President for Region 11 (Arizona, Colorado, Nevada, New Mexico, Utah, Wyoming) in 2016, and REALTOR® Party Director in 2015. Kenny was also the REALTOR® Party Member Involvement Liaison in 2013 and the Information, Communication, and Business Development Liaison in 2012.
-
Savings Goal Calculator
Tools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
Cash vs. Mortgage: How to Pay for Your Second Home
Should you buy your second home outright or finance it with a loan? Weigh the pros, cons and tax implications before making the leap.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to Know
If you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
I'm a Real Estate Investing Expert: Optional 721 UPREIT DSTs Can Be the Best of Both Worlds
Before investing in any 721 UPREIT exchange, look for one that offers a straightforward, investor-friendly exit.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop Investments
Truck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.