Want to Build Wealth? Buy a Home This Year.

Dan May • February 3, 2021

Want to Build Wealth? Buy a Home This Year.

A little girl is watering a plant in a garden with a watering can.

Every year, households across the country make the decision to rent for another year or take the leap into homeownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent in most of the country.
There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the wealth built through equity when you own a home.
Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:

      “Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the              50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”

What has this equity piece meant to homeowners in the past?

ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:
A graph showing the highest level in the u.s. since 2005

The typical gain in the sale of the home (equity) has increased significantly over the last five years.

CoreLogic, another property data curator, also weighed in on the subject. According to their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.


What does the future look like for homeowners when it comes to equity?

Here are the seven major home price appreciation forecasts for 2021:

A table showing the average of all seven realtors

The National Association of Realtors (NAR) just reported that today, the median-priced home in the country sells for $309,800. If homes appreciate by 5% this year (the average of the forecasts), the homeowner will increase their wealth by $15,490 in 2021 through increased equity.


Bottom Line

As you make your plans for the coming year, be sure to consider the equity benefits of home price appreciation as you weigh the financial advantages of buying over renting. When you do, you may find this is the perfect time to jump into homeownership.


Beverlywoood_home

BEVERLYWOOD AREA NEIGHBORHOOD NEWS - August 2026

By Dan May • August 13, 2026
Ready to Start Planning? If you're considering selling your home in the coming year, now is the perfect time to start the conversation. A personalized home valuation, professional market analysis, and no-obligation consultation can help you understand your home's current value, identify opportunities to maximize your return, and create a strategy that fits your timeline. The best time to prepare your home is before you decide to list it. Contact Dan May today to schedule your complimentary home valuation or consultation and start planning with confidence. Dan May Dan May Real Estate Team REALTOR®, Broker Associate Mobile: (310) 739-8647 dan@danmayrealestateteam.com CA DRE #01069168 LinkedIn - https://www.linkedin.com/in/dan-may-a161a55/ Instagram - https://www.instagram.com/danmayrealestateteam/ Facebook - https://www.facebook.com/DanMayRealEstate

Thinking About Selling Your Home Next Year?

By Dan May • July 9, 2026
Why Summer Is the Best Time to Start Planning. A Little Preparation Today Can Lead to a More Successful Sale Tomorrow.
santa_monica_street

The Hidden Cost of Homeownership in 2026: What Los Angeles Homeowners Need to Know About Insurance

By Dan May • June 25, 2026
Los Angeles neighborhood highlighting homeownership and property values in 2026

West LA Real Estate Update: Castle Heights Area Home Sold

By Dan May • May 28, 2026
West LA Real Estate Update: Castle Heights Area Home Sold

Why Some Homes Are Selling Fast in 2026 While Others Sit on the Market

By Dan May • May 8, 2026
Well-Priced Homes Are Still Selling Quickly in Today’s Market
Lake_Balboa_Home

Lake Balboa Fixer Opportunity with ADU Potential | 6555 De Celis Place

By Dan May • April 28, 2026
Lake Balboa Fixer-ADU Opportunity 6555 De Celis Listed at $599,000

West Los Angeles Home in Castle Heights Area Moves Into Escrow

By Dan May • April 24, 2026
West LA Real Estate Update: Castle Heights Area Home in Escrow

How the Spring 2026 Market Is Shaping Up for Westside Sellers

By Dan May • April 9, 2026
 Is Spring 2026 a Good Time to Sell a Home on LA’s Westside?
alt=

Castle Heights Real Estate Market Update – March 2026 Trends for Buyers and Sellers

By Dan May • March 9, 2026
Castle Heights remains one of the smaller but consistently active residential markets on Los Angeles’ Westside. Located between Beverlywood and Culver City , the neighborhood attracts buyers looking for a central location with convenient access to employment centers, dining, and entertainment throughout the Westside. 
More Posts