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Benefits of Homeownership in America
Homeownership in America offers benefits that renting don’t. Besides the fact of consistently paying for housing that is not yours, opportunities are available to those that choose to own a home versus those that rent. Safe neighborhoods, educational gains and stability are just a few advantages to owning a home. Most researchers have struggled to find out who becomes a homeowner and who doesn’t. Answers through research by William Rohe (University of North Carolina at Chapel Hill) and Leslie Stewart (Research Triangle Institute), in the exert entitled, “Homeownership and Neighborhood Stability,” proposes that “social characteristics of the household, expectations of household mobility, and local market conditions” are three determining factors of homeownership. They all are positively related to “household income, family size, marital status, and age of head of household (Rohe, 6).”   Wealth, income tilt (the degree to which income increases), and permanent income (the degree to which a steady income persist over a period of time), are other factors that determine who owns a home. Room can also be made for race, ethnicity and local markets. Regardless of the barrier to home owning, the benefits that are generated doesn’t stop with the actually homeowner; they overflow into the communities, the lives of the inhabitants, and also the future wealth of individual families.

Community Benefits
Homeownership is often times looked at as solely benefitting the inhabitants of the home. Yet, homeownership’s benefits trickle out into the community in which the home is in. Stability, the idea of being in continuance, firmly established, enduring or permanent, is a level that most people try to reach in their lifetime. It could vary from financial stability, to that of personality stability; in the case of homeownership, research by the Fannie Mae Foundation has concluded that homeownership increases neighborhood stability. Owning a home implies that one will live in a certain area for a permanent amount of time; therefore, people have the tendency to improve their living conditions especially if they planned to be there for a while. Statistics, from the Habitat for Humanity New York City, show that homeowners on average stay in their home for 8.2 years while renters move every 2.1 years. 70 percent of homeowners have lived in their home for more than four years, whereas 70 percent of renters have lived in their home for less than four years (Rohe, Van Zandt, and McCarthy 2001). Evidence from the National Association of Realtors (NAR) supports this idea as they found homeowners to be better citizens and neighbors. They, homeowners, take pride in what’s theirs, they participate in civic matters, and they strive to maintain their properties at a higher standard. Civic matters include clubs, neighborhood associations, and religious institutions. Homeowners have reported attending church consistently than most renters, and they give $150 more per year to their churches than what renters do. Political awareness and participation is 25 percent higher of those that own a home to those that rent; thus, solving local problems is more of a priority of homeowners. Lastly, direct identification of community leaders is 9 to 10 times prevalent with homeowners (Rossi and Weber 1996). Homeowners strive for satisfaction; in most cases, they feel satisfied with their community than renters. Results consist of an overall improvement in neighborhood health, which makes neighborhoods desirable places to live.

Family Benefits
Owning a home opens opportunities up to families for acquiring the best public services, gaining access to the nicest communities, and receiving a quality education for children. Families that own homes have more control of crime rates that presume to be lower in home owning communities. NAR concludes that “homeowners have a lot more to lose financially than do renters (National Association of Realtors).” Both direct and indirect property crimes significantly impact the victims and the overall property values of neighborhoods. Therefore, homeowners are more likely to execute voluntary programs that reduce crime rates in neighborhoods and communities. Social development of children is another variable affected by homeownership. Behavioral problems including, interaction with other children, difficulties concentrating, having strong tempers, withdrawals, and inferiority to others, have a 1 to 3 percent rate for those owning a home versus renters (Haurin, Parcel, Haurin 2000). Possibilities for these behavioral problems could be tied to the social environment children are exposed to. It’s a fact that children of renters are “twice as likely to grow up in single parent housing or be on welfare (Haurin, Parcel, Haurin 200).” A substantial difference in the income levels of homeowners and renters attribute to the social environment children are exposed to as well. Education success and academic achievement scores have shown to be affect by whether children live in a home that is rented or owned. Math and reading achievement test have shown to be 7-9 times better in homes owned; high school graduation rates are also up 25 percent in homes owned. Post-secondary schooling in twice as likely to occur and 116 percent more graduation rate from college is prevalent in homes owned (Homeownership Alliance of Nonprofit Down-payment Providers). Future success in children have been attributed to managerial and financial skills that are needed to own a home; early exposure to these skills transfers to the child, and enhances their chances of becoming financially stable adults (Village Homes 2008).

Wealth Effect
“Homeownership is by far the single most important way families accumulate wealth (Shapiro, 3).” These are the famous words of Thomas M. Shapiro in his book, “The Hidden Cost of Being African American.”   By interviewing various families, Shapiro was able to assume that homeownership creates future wealth through transformative assets. Transformative assets are assets inherited by individuals that have the ability to lift them beyond their social and economic standings their own efforts and earnings position them (Shapiro). Children of homeowners are 59 percent more likely to own their own home (Homeownership Alliance of Nonprofit Down-payment Providers). Most investments carry risk such as the stock market; homeownership in fact carry less risk with a secured return on the investment. Homeownership is an investment for future wealth accumulation by homeowners being able to reap the full return associated with house price appreciation (Zandt). As time progresses, most homes increase in market value; owners continue to remold, change and keep up the maintenance in their home. By a home is therefore seen as an investment with many people yield a profit for in buying and future sales of their home. While mortgages are being paid, “a household builds equity” (Zandt). Equity is the difference in the value of the home and the remainder amount owed on the home. Equity makes of 45 percent of a home owner’s net worth; minorities have even higher net worth in home equity. Besides the equity that is generated by mortgage payments, homeownership has the potential to act as collateral for borrowing money. Starting new business, funding for college education, and repair or additions are a few things borrowing money on a house can create. “Homeowner’s are three times more like to start a business than that of a renter” (Habitat for Humanity, New York City). This wealth effect doesn’t just stop within the family that owns a home, but it also flows out into the economy. Homeownership acts as an economic stimulus, with direct spending on housing, taxation, and consumer spending by homeowners. New businesses that are created through borrowing money a home stimulate the economy as well.