The Long-Term Benefits of Homeownership

• In 2026, the U.S. homeownership rate is 65.7%, which is below the historical peak of 69.4% reached in Q2 2004.¹
• In 2025, the median net worth of homeowners reached $458,900, compared to $10,600 for median renters.²
• Research consistently links homeownership to reduced stress levels and improved social, mental, and physical health.³
• Children of homeowners have a 19% higher graduation rate than renters and are twice as likely to pursue postsecondary education.⁴

Homeownership can play an important role in building long-term household wealth. In 2025, the median net worth of homeowners was $458,900, compared with $10,600 for renters.⁵ Beyond wealth accumulation, research has associated homeownership with several other potential benefits, including improved health and well-being, greater community involvement and positive educational outcomes for children. Learn more in this edition of Ameris Bank's Mortgage Monitor.

Wealth Accumulation

Homeownership can provide an opportunity to build wealth over time as homeowners build equity and property values change. Over the past 30 years, U.S. home values have increased significantly.⁶ In June 1996, the median new-home sales price was $139,900, compared with $410,700 in June 2026.⁷

“Homeownership is unique because it provides a place to live while also giving homeowners the opportunity to build equity over time,” said Brett Hively, Senior Vice President, Mortgage Capital Markets and Financial Strategist at Ameris Bank. “For many families, that can create a financial foundation that extends well beyond the home itself.”

For many households, home equity represents an important component of long-term wealth. It may also provide a financial resource later in life or during periods of financial need.⁸ Over time, the combination of building equity and owning a long-term asset can play an important role in a household’s broader financial picture.

Enhanced Health and Well-Being

Beyond its potential financial advantages, research has associated homeownership with a range of health and well-being outcomes. Studies generally link homeownership with lower stress and better social, mental and physical health.⁹

One recent study found that homeowners had lower odds of several chronic conditions, along with improved access to health care and greater use of preventive services after accounting for socioeconomic characteristics.¹⁰ Another study found that each $10,000 of borrowing capacity against home equity was associated with a 2.2 percentage-point reduction in food insecurity among older adults.¹¹

“Financial and residential stability can have implications that extend beyond a home's value,” noted Brett Hively. “For many households, having a stable place to live and the opportunity to build equity can be an important part of their broader financial picture.”

A Pathway to Success for Children

Parental homeownership has also been associated with positive educational outcomes for children. Children in homeowning families are more likely to remain in school until age 17 and have demonstrated stronger performance on math and reading achievement tests than children in renting families.¹² They also have a 19% higher graduation rate and are twice as likely to acquire some postsecondary education.¹³

“The value of homeownership can extend well beyond building equity. The stability it can provide may help create a strong foundation for families and the next generation,” said Brett Hively.

¹ https://www.realtor.com/research/2026-generational-wealth/

^{2, 3, 5, 8, 9, 10, 11} https://eyeonhousing.org/2026/10/research-highlights-the-broad-benefits-of-homeownership/

^{6, 7} https://www.macrotrends.net/3008/us-median-home-sales-price

^{4, 10, 11, 12, 13} https://habitatnwnj.org/benefits-of-homeownership/

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.