Today’s mortgage rates and home prices might make you wonder if buying a home is the right choice at this moment. Although market conditions are certainly significant, it's essential to look at the broader perspective: the long-term advantages of owning a home.

If you consider the people you know who purchased a home 5, 10, or even 30 years ago, it's likely you'll struggle to find someone who regrets that choice. This is largely because, over time, home values tend to appreciate, which in turn increases a homeowner’s net worth. Let’s explore how this growth can accumulate over the years.

Home Price Growth over Time

The map below uses data from the Federal Housing Finance Agency (FHFA) to illustrate how much home prices have increased over the past five years. Because home prices change depending on the location, the map is divided into regions to highlight the broader market trends.

Nationally, home prices have jumped by more than 57% in just five years.

Some areas are a bit higher or lower than that average, but in general, home prices have really jumped up in a short period. If you take a broader view, the advantages of owning a home and the significant increases in value that homeowners have experienced over the years become even more obvious.

The second map indicates that, over about 30 years, home prices have increased by more than 320% on average across the country.

A typical homeowner who purchased their house around 30 years ago has likely seen their home's value triple over that period. This significant increase is a key reason why many homeowners from those years still feel satisfied with their choice today.

Bottom Line

Today’s market can be quite complicated. However, if you’re prepared to buy now, we should chat about how we can make it happen. This way, you can benefit from the long-term perks of homeownership, such as building wealth as your home’s value increases.