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Importance of Homeownership

Homeownership provides shelter and security to families and fosters great participation in community life. It also provides significant community, social and financial benefits as well. Homeownership is the cornerstone of the American economy and a meaningful approach to enhanced communities.

Owning a home has been and continues to be at the heart of the American dream. Today, more Americans own their own homes than ever before. It reached its peak in 2007 with a record 70% of Americans owning their homes. Homeownership is not only good for the individual who buys the home, but for the vitality of the community. However, on an individual basis, homeownership is the most effective means to create and maintain wealth. Even given the subprime bubble, owning a home still provides an effective means of maintaining and building assets. This happens because owning a collateralized (tangible asset with equity) asset is an effective approach to hedging against personal and broader economic short-falls.

Homeownership not only builds stronger communities, but it also strengthens families because they take pride in their community and get involved in local activities. Families gain self-sufficiency and pride by having their own domain. Renewalfinancial.com is dedicated to educating consumers about the homeownership process, which plays a critical role in improving the buying process through more effective credit education, mortgage financing and realty services.

Homeownership for minorities has and continues to be an elusive goal. Even though it has increased among most minorities over the past three years, there is still a disparity between ownership rates for different ethnic groups. Not only is there a disparity among minorities, but low- and moderate-income families experience lower rates of homeownership than middle and upper income Americans.

African Americans had a homeownership rate of 48.2% in the fourth quarter of 2006, while Latino-Americans had a 49.5% homeownership rate in the same period. Asian, Native Americans and Pacific Islanders had a 60% homeownership rate. By comparison, 76% of non-Hispanic whites were homeowners.