
Median Home Made More for Homeowners Than Their Jobs

Homeownership has always been part of the American Dream. Because of that, many people accept owning a home as the right, even obligatory, thing to do without considering the benefits and the risks. If you are contemplating buying a home, you should know and review the pros and cons of the investment you are about to make, as you would any investment decision before signing on the dotted line.
Benefits of investing in real estate
The benefits of investing in homeownership are numerous. With well-chosen assets, investors can enjoy predictable cash flow, excellent returns, tax advantages, and diversification, and it’s also possible to leverage real estate to build wealth.

Cottonbro/ Pexels | Homeownership helps families build wealth, in part, because it is a forced-savings mechanism
Cash flow
Real estate can also provide consistent, reliable income, especially rental properties (both residential and commercial). If you’re still working a 9-to-5 job, that can mean additional cash to use toward vacations and nice-to-haves. And if you really build out your portfolio, it could equal an entirely new career.
Real estate investors make money through rental income, any profits generated by property-dependent business activity, and appreciation. Real estate values tend to increase over time, and with a good investment, you can turn a profit when it’s time to sell. Rents also tend to rise over time, which can lead to higher cash flow.
Diversifies your portfolio
If you’re already invested in stocks, bonds, gold, and other securities, real estate offers a good way to diversify that investment portfolio and mitigate risk. By spreading your funds across a number of different vehicles, you can more effectively offset losses, should they occur. The addition of real estate to a portfolio of diversified assets can lower the volatility of your portfolio and provide a higher return per unit of risk.

RODNAE Productions/ Pexels | 84 percent of Americans say homeownership is a priority
Recent discoveries from new studies
Stocks have nothing on real estate. At least in terms of building wealth. Younger households with middling incomes who bought a home within the last 10 years have been able to enjoy massive wealth gains, with housing wealth across nearly 1,000 U.S. cities increasing by over $8 trillion since 2010, according to a new study.
New studies and reports on 2021 real estate data suggest that last year the growth in a typical home’s value was much higher than the median income of 80% of the population in the United States. This is the first time homes have earned much more money for households than median workers in most major metro areas across the country, including high priced areas, such as San Diego and California.

Eziz Charyyev/ Pexels | Real estate investing is one of the best ways to secure an early retirement
In California, and nationally, growth topped out at $229,000 in San Jose. whereas, surprisingly, the growth of Los Angeles was at almost $132,000, approaching triple the median wage, $50,000. In Riverside and San Bernardino counties, the growth, at just over $111,000, far outpaced the median wage of $45,000. Researchers saw the same trend in the Southwest in greater Phoenix, the growth in home values, at $103,470, doubled the median wage, $52,000.
More in Investments
-
`
Matthew Perry Foundation Launches Addiction Fellowship at MGH
The impact of addiction on individuals and families is profound, and the need for specialized medical care in this field has...
February 13, 2025 -
`
Celebrity Couples Who Have Ended Their Relationships in 2025
2025 has already seen its fair share of celebrity breakups, and the year is just getting started. From heartfelt announcements to...
February 6, 2025 -
`
How Trump’s Policies Will Reshape Artificial Intelligence in the U.S.
The United States witnessed a significant political shift as Donald Trump took the presidential oath once again. His return to the...
January 31, 2025 -
`
Millie Bobby Brown Shuts Down Age-Shamers with a Powerful Message
From the moment Millie Bobby Brown first appeared as Eleven in “Stranger Things,” she captured hearts worldwide. But growing up in...
January 25, 2025 -
`
Why Outsourcing Payroll Services Is a Smart Business Move
Managing payroll is no small task—it’s a crucial part of any business that ensures employees are paid accurately and on time....
January 15, 2025 -
`
These AI Stocks Should Be on the Watch List of Investors in 2025
The buzz around AI stocks is growing louder than ever. With artificial intelligence shaping industries like healthcare, finance, and tech, smart...
January 8, 2025 -
`
Why the Starbucks Workers Strike Is Expanding Across U.S. Cities
The Starbucks workers’ strike has gained significant momentum, with employees in more U.S. cities joining the movement to address unresolved issues...
January 2, 2025 -
`
Are Shawn Mendes and Camila Cabello Still Close After Breakup?
The connection between Shawn Mendes and Camila Cabello continues to intrigue fans worldwide. Their shared history, from chart-topping collaborations to a...
December 24, 2024 -
`
Here’s What It Takes to Become a Professional Physical Therapist
Physical therapy is a career that blends science, empathy, and problem-solving to help people recover from injuries or improve mobility. Knowing...
December 19, 2024
You must be logged in to post a comment Login