Every January, people set resolutions around health, career growth, and finances. But one resolution often gets pushed to the side because it feels overwhelming or “not quite the right time”: buying a home.
Yet when you step back and look at the data, the long-term trends, and today’s market conditions, homeownership continues to stand out as one of the most powerful tools for building stability, wealth, and control over your future.
Homeownership and Wealth: The Gap Is Real
According to a 2024 report from the Aspen Institute Financial Security Program, renters hold less than 3% of wealth compared to homeowners. The median net worth of renters sits around $10,400, while homeowners average $400,000. That gap is not accidental.
The report, based largely on Federal Reserve survey data, reinforces what many Americans already sense: homeownership plays a critical role in long-term upward mobility. While buying a home isn’t the right move for everyone at every stage of life, those who can afford it maintain ownership over several years often see meaningful financial advantages.
The Power of Leverage (And Why It Matters)
One of the most overlooked benefits of homeownership is leverage. When you buy a home, you are using a relatively small amount of your own money to control a much larger asset.
For example:
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Purchase price: $500,000
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Down payment (10%): $50,000
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Loan amount: $450,000
If that home appreciates just 3% annually, its value could grow to roughly $671,000 over 10 years. That represents a gain of about $171,000, not including the equity built through principal paydown via monthly payments. That appreciation is earned on the full value of the home, not just the cash invested upfront. I am not aware of any other tangible asset where you can take control for as little as 3% of the initial cost, see substantial appreciation on the full value, and keep all of the profit for yourself, are you?
This combination of appreciation, mortgage paydown, and time is what makes homeownership a long-term wealth-building strategy rather than a short-term play.
A Long-Term Investment, Not a Quick Flip
The housing market does move in cycles. According to the Case-Shiller Home Price Index, national home prices have risen nearly 50% since 2020, but history reminds us that this sort of growth is not normal, nor should it be expected in the future. This is why buying a primary residence should be viewed as a long-term investment, measured in decades, not years. Unlike stocks or retirement accounts, a home doesn’t just function as a financial asset. It also provides stability, community, and control over your living environment. These benefits don’t show up neatly on a spreadsheet, but they matter deeply in real life.
The Reality of Ongoing Costs
Homeownership does come with responsibilities. Beyond the mortgage payment, homeowners should plan for:
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Property taxes, often around 1 to 2% of value annually
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Insurance
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Maintenance and repairs, commonly estimated at 1 to 2% of home value per year
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HOA fees, when applicable
Understanding these costs upfront is key to buying within your means. A commonly used guideline is keeping total housing costs between 25 and 28% of gross household income, which helps ensure long-term sustainability.
Forced Savings and Inflation Protection
One often overlooked advantage of homeownership is that it functions as a forced savings plan. Each mortgage payment gradually builds equity, unlike rent payments that offer no return. Over time, this equity can become a powerful source of financial flexibility.
Additionally, owning a home can offer some protection against inflation. While rents often rise over time, a fixed-rate mortgage keeps your principal and interest payments stable, even as wages and costs increase.
What the Austin and Central Texas Market Is Telling Us
Locally, the data points to a market that is stabilizing rather than overheating. According to the most recent Central Texas Housing Report from Unlock MLS and the Austin Board of Realtors:
Median prices in the Austin metro are down about 1% year over year
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Inventory is higher, with supply nearing five months worth of inventory (how long it would take to sell all active listings if homes continued going under contract at the current pace without any new listings coming to market)
Pending sales are increasing, signaling renewed buyer activityAverage close-to-list price sits around 92%, giving buyers room to negotiate
Redfin has also identified the Austin metro as one of the strongest buyer markets in the country, noting that price growth has cooled and affordability is gradually improving. Their economists predict a “Great Housing Reset,” marked by wage growth beginning to outpace home price growth for the first time in years.
For buyers, this means more options, more leverage, and less urgency-driven decision-making than we have seen in recent cycles.
Opportunities in Today’s Market for Different Buyers
In Central Texas, today’s market is creating opportunities that haven’t existed in years.
First-time buyers can take advantage of strong builder incentives, including closing cost assistance, interest rate buydowns, and special loan programs that help reduce upfront costs and improve affordability. Many of these programs are not always obvious online, and having access to the right resources can make a meaningful difference in how and when buyers are able to enter the market.
Buyers looking to upsize or downsize are also operating in a more favorable environment. With higher inventory levels and more realistic pricing, these buyers often have increased negotiating power and greater flexibility. This allows for more strategic moves, whether that means finding more space, simplifying, or better aligning a home with current lifestyle needs.
Understanding how to navigate these opportunities, and which ones apply to your specific situation, is key. With the right guidance, buyers in all stages can make informed decisions in a market that rewards preparation and strategy rather than urgency.
A Personal Perspective
“After years of working with buyers across Austin and Central Texas, I’ve seen firsthand how powerful homeownership can be when it’s approached thoughtfully. The most successful buyers aren’t the ones chasing headlines or trying to time the market perfectly. They’re the ones who plan ahead, buy within their means, and think long term. A home isn’t just a financial decision. It’s a lifestyle decision, a stability decision, and for many people, a foundation for everything that comes next.”
Dave Bunyea
