Why Homeownership Matters—For Families, Communities, and the Economy

Homeownership has long been woven into the fabric of the American Dream—and for good reason. Research from the National Association of Realtors® (NAR) shows that housing isn’t just about having a place to live; it plays a powerful role in strengthening families, stabilizing communities, and supporting the broader economy.

Let’s start with the big picture. The housing sector has a massive economic footprint. According to NAR, housing directly accounted for about 15.6% of total U.S. economic activity in 2015. By the end of that year, American households held $22.5 trillion in real estate assets, and even after accounting for mortgage debt, net household real estate equity stood at $13.0 trillion. That’s not just wealth on paper—it’s financial security, opportunity, and long-term stability for millions of families.

But the real magic of homeownership goes beyond dollars and cents.

The Social Power of Owning a Home

NAR research consistently shows that homeownership delivers meaningful social benefits that ripple outward—from individual households to entire neighborhoods and even the nation as a whole. Because of these benefits, policymakers have historically supported homeownership through a variety of programs and incentives.

At its core, owning a home often means stability—and stability changes lives.

This body of research looks not only at homeownership itself, but also at the broader impact of stable housing (as opposed to frequent moves or homelessness) on key social outcomes, including:

• Educational achievement – Children in stable housing environments tend to perform better in school and have higher graduation rates.
• Civic participation – Homeowners are more likely to vote, volunteer, and engage in local organizations, strengthening democracy at the community level.
• Health outcomes – Stable housing is associated with better physical and mental health for both adults and children.
• Crime reduction – Neighborhoods with higher homeownership rates often experience lower crime and stronger social cohesion.
• Reduced reliance on public assistance – Housing stability can lower dependence on government support programs over time.
• Property maintenance and improvement – Homeowners are more likely to invest in upkeep and improvements, which boosts neighborhood pride and property values.

Why This Research Matters

Taken together, decades of academic research reviewed by NAR point to a clear conclusion: homeownership creates positive externalities—benefits that extend well beyond the individual homeowner. These benefits help explain why supporting sustainable, responsible homeownership isn’t just good housing policy—it’s good social policy.

In short, when people have a stable place to call home, communities grow stronger, opportunities expand, and the American Dream remains within reach for future generations.

Source: National Association of Realtors® (NAR)