Recently released survey results revealed homeownership is a primary source of net worth for many Americans and an important step in accumulating personal financial assets over the long term.
The Survey of Consumer Finances noted primary residence accounts for about one-quarter of all assets held by households in 2016, ahead of other financial assets, business interests, and retirement accounts.
“We must continue to address the obstacles that remain for many potential home buyers, including factors that increase the cost to build new homes,” said Randy Noel, chairman of the National Association of Home Builders (NAHB) and a custom home builder from LaPlace, Louisiana. “Skyrocketing costs for lumber is the number one challenge for builders right now.”
Since early 2017, rising lumber costs have increased the price of an average single-family home by nearly $9,000 and the market value of an average new multifamily housing unit by over $3,000.
Officials said building equity and accruing wealth when the value of a home appreciates are among the longer-term financial benefits of homeownership, referencing Americans had a record-high $14.4 trillion of equity in their homes in the fourth quarter of 2017.
The national homeownership rate of 64.2 percent is currently showing signs of sustained growth after bottoming out to a cycle low of 62.9 percent in the second quarter 2016, officials said, acknowledging the number is still down from the peak of 69.2 percent in 2004 and remains below the 25-year average rate of 66.3 percent.