Homeownership as the Key to Wealth Creation in the United States

Owning a home can provide stability for families and help them stay rooted in their communities. It can also be a way to build wealth and create a legacy of intergenerational wealth. Simply put, homeownership could be the key to wealth creation.

Real Estate Is an Investment

Many people view their homes primarily as a roof over their heads rather than an investment. Yet they are thrilled when they can move up in two, three, or five years due to the substantial equity they’ve gained in their current home. If they looked at this equity as investment returns, they could use it to generate income and asset growth. 

But you must look at it correctly—not just as a roof over your head. The equity you have in your home can provide you and your family with new opportunities, such as making a profit if you sell the house.

One of the best ways to build wealth is to take out a mortgage on a property, live in it as your primary residence, and then refinance at a low-interest rate when you have built up equity. You can also borrow against the equity you have in the home to put a down payment on an investment property.

You can earn rental income from tenants once you’ve bought an investment home. After you’ve built up equity in the property through cash flow, you can take out a home equity loan or cash-out refinance on the property and start the cycle again.

Of course, owning a home comes with some risks—but over time, owning property has historically led to stable and significant returns. No risky stock investments are required.

Homeownership vs. Renting in the Long Term

There are many benefits to owning a home, both in the short and long term.

Buying a home can stabilize your housing payments in the short term if you choose a fixed-rate mortgage. This means your payments will generally stay the same from month to month, with only small changes possible due to fluctuating taxes and insurance. This can make budgeting for those costs much more straightforward.

The downside is that rent prices can go up without any notice, and you have no say in the matter. This can leave you struggling to come up with the extra cash or force you to find a new place to live. So, do the math: See if renting or buying is a better option.

Meanwhile, owning a home comes with equity. A homeowner can access the equity in their home by selling the property, taking out home equity, or cash-out refinance loans.

Owning a home has tax benefits, too. You can deduct the interest you pay on your mortgage and, in some cases, the interest on a home equity loan or home equity line of credit. You may also be able to deduct your property taxes. So you can have a stable monthly mortgage payment—and possibly spend less each month than you would on rent—and get tax breaks.

While renting may be more convenient in the short term, buying a home over time is often cheaper and more financially beneficial. This is because when you buy a house, you make a long-term investment, which can help you save money, establish passive income streams, and progress toward your financial goals. Owning a home will also help you with retirement planning and allow you to build long-term wealth creation strategies.


If you can afford to own a home, you should seriously consider buying a property, as it can provide you and your family with a wealth of opportunities down the road. Look at the long-term benefits of owning a home, and remember that when you purchase a property to live in, you aren’t just buying a place to live. You are also investing in your future.

At Evergreen Investments, we connect homeowners to wealth-building opportunities from their residential real estate assets. We are a real estate service provider for property owners and investors with industry-leading investment real estate research and world-class advisory and transaction services. Our team provides unparalleled market knowledge, access to hidden investment off-market opportunities, and real estate-related advisory and property support for a lifetime. If you want to build generational wealth, investing in real estate is a good start. Get in touch with us to review your options. 

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