Homeownership: Benefits for Children, Families and Communities (Winter 2007)

Research has shown that home ownership is a vital component in the success of families and children. Studies have shown that, even when the variables of income, race and the age of parents are equal, the children of homeowners have better outcomes than the children of renters.

Children
Research has shown that home ownership is a vital component in the success of families and children. Studies have shown that, even when the variables of income, race and the age of parents are equal, the children of homeowners have better outcomes than the children of renters. For example, as compared to renters of the same income, race and parental age, children of homeowners are:

• 25% more likely to graduate from high school
• 116% more likely to graduate from college
• 20% less likely to become teenage mothers

Building Family Wealth
Home ownership also produces wealth, particularly for low-income families. For example, homeowners (again, of the same income, race and age) are:

• 12 times more wealthy than renters, with 66% of their wealth rooted in their homes. 
• On average, homeowners accumulate an average of $44,000 in home equity during the first 10 years of home ownership.

Neighborhood Stability
High home ownership rates have long been associated with neighborhood stability.
Research has found that:

• For every 1% increase in a neighborhood's home ownership rate, home values increase approximately $800
• Every home that is sold produces approximately $886 in revenue and taxes for government agencies
• Compared to renters (or their landlords), homeowners are 28% more likely to maintain upkeep of the property
• Homeowners are 10% more likely than renters to report that they have worked to solve local problems

*Statistics courtesy of Hartford Areas Rally Together