Housing Inequality in AmericaMain MenuThe Generational Illusion: An EssayAn Essay by Collin AndrewsEnvironmental Racism: How Residential Segregation Shapes Environmental InequalityHistoric Preservation Coast to CoastTitle PageNative American Housing: How Poor Housing Harms Indigenous HealthHow Poor Housing Harms Indigenous HealthPets & Housing: It's "Ruff" by Katie ClineHow NIMBYism Exacerbates Housing InequalityWhere's the Wealth!How Housing Discrimination has led to racial wealth inequality in the United StatesImmigrant Housing Inequality in AmericaIswat JinadSurveillance InequalityAn investigation into how poor communities are oversurveilled creating a cycle of more targeted and aggressive forms of surveillance for them and those around them.Post-WWII Urban Flight and the Birth of the SuburbsHousing Discrimination in Suburban AmericaRace, Repressive State Apparatus, and Homelessness: From Colonialism to COVID-19Tina NandiHousing Inequality and Access to Quality EducationMQ: Title PageVisualizing racial housing discriminationSplash page for path that includes interactive resources regarding racial housing discriminationProject information and creditsAndy Schocket278555063cc66428c8eadf42f48d412091c5aaf9Melissa Laddab8653014603439710b65435181f2130cee53400Andrew Bartelc9a57442f34fea7858b734ce98f4ec79bd5565b0Collin Andrewsf69afa6ae7fb0f33058b9e0cb476f7451a667cefTina Nandi6e38643c2c1510534cce4e954f0eeb8108bce699Iswat Jinad196dd805bf51f7a46fbf2d94ab069e97fc004d75Marcus Harris7e23857364c2363b25872718aea81323bdd37773James Cousinoe9398a1542d344c824ddaaf967819ae589cd2b61Katie Cline512add1943f75cbd770d4788dcdea90b706922c4Trisha A Bonham7fa13b399c9331700d719225b96f3bf9e54c4570Rene Oswald Ayalac01cc7385c24c3926f2f03a40860f6a4f703f410Kristine Ketel826fdfc33a24cff2c1e0ab79396dd2ae2bae3ed9Morgan Quinleyc8a47798c223cced64347bc9a7d80f6a64402e45
M_H huffpost citiation
12022-12-06T13:42:36-08:00Marcus Harris7e23857364c2363b25872718aea81323bdd37773412372plain2022-12-06T13:51:57-08:00Marcus Harris7e23857364c2363b25872718aea81323bdd37773"Homeownership as a Key Driver of Wealth," by Ben Hecht, posted on April 19, 2017, Homeownership as a Key Driver of Wealth | HuffPost Contributor
Real estate appreciation simply put is the increase of a property’s value over time. There are a variety of factors that contribute to such an increase, and the same factors can cause a home to lose value as well. The 25-year average appreciation rate of U.S. homes is 3.9%. Factors that contribute to home value appreciation are:
Amenities
Condition
Size
Location
Supply and Demand
Economy
Interest rates
Inflation
12022-12-02T05:30:29-08:00Leverage: Turn a Little into Alot6plain2022-12-09T09:28:45-08:00 Now that we’ve tackled appreciation, how does a owning a home enhance one’s leverage? What Hecht is describing here is the power of a home to leverage an initial investment into greater returns through the mechanism of appreciation. Simply put, what one invests in the form of a down payment can have significant returns because a home appreciates based on the entire value, not what you invested. Numerically speaking, if the average appreciation is 3.9% and a homeowner invested $10,000 on a down payment on a $100,000 home, this translates to a $3,900 return on investment (ROI) instead of a $390 return. Lastly, the concept of forced savings is pretty simple. Paying off a mortgage as savings? Sounds counterintuitive, but as a homeowner pays off the mortgage, they are building equity at the same time. When the mortgage is paid off a homeowner has something to show for it. A home that is payment free from that point on, but more importantly value that can be taken out against the home, or profit on the sale of the home. A home can be much more than a place to live, it is in essence a giant piggy bank. Now keep in mind all the factors listed that contribute to home ownership can work in the other direction. A home can depreciate in value as well.