In a recent National Mortgage Professional Daily post, the question was asked: How are loan officers having success with prospects in this higher-rate environment? Certainly, it is harder to convert those on the fence when mortgage rates are higher, making home ownership less affordable. However, it is not always the dollars that motivate people to address their living situation.

This article is not about convincing the fence-sitters with the economic upside of real estate, however. That’s not to say that we think that homes have ceased to be a solid investment. Quite the contrary: In addition to the appreciation of real estate, one can add the tax benefits of owning a home as well as the fact that home mortgage payments do not increase as quickly as rent, which makes the home a hedge against inflation. Beyond these benefits, add the fact that the home is a forced saving plan with payments that lower your mortgage obligation as opposed to 100% going to a landlord. Therefore, in the long run, real estate is likely to remain a component of long-term financial plans.

Rather than explore these familiar economic advantages, though, we’re going to focus on the psychological and social aspects of homeownership. 

Some time ago, mortgage giant Fannie Mae conducted a national survey regarding homeownership. Among other findings, they discovered that Americans would choose to work an additional decade in order to become a homeowner. Our interpretation of this answer really helps us see that there is more to homeownership than money.

Also, some time ago, an article appeared on the internet that should remind everyone that the dream of homeownership extends far beyond dollars and cents. The piece was written by a single mother who worked for a non-profit in a high cost of living area: Montpelier, Vermont. The Montpelier Pride’s editor noted: Single Mother Dorl Oatley writes about the thrill, pride and satisfaction of owning her own home. Here are some quotes from the story: 

Homeownership is a wonderful experience. The stability that owning a home offers a family is invaluable. To realize that in a year, you will be here … that this first Christmas or this first birthday celebrated here will be the beginning of many provides a feeling of consistency and a sense of home that is hard to describe. As a renter, between rising costs or a landlord’s decision to remodel or sell, I had moved a lot and never knew whether I would be celebrating the next year’s milestone in the same home … The opportunity to start a stable home for my daughter who is now thriving in middle school, is a wonderful blessing … there comes with owning a sense of pride that caught me off guard. I have given more attention to the aesthetics both inside and outside the home since I have become a homeowner … 

Stability. Pride. Control. Permanence. These are all words that homeowners have used many times to describe their experiences. There is no doubt that those of us who are homeowners understand these feelings. It is one of the reasons that many immigrants want to come to our country. It is not only because the country is wealthier and may have more political and personal freedom. An important factor is the fact that, in many countries, homeownership is not possible. Sometimes Americans take the right and ability to own a home for granted. Not so with immigrants.  

Throughout our history, our government has played a major role in facilitating the American Dream of homeownership. The freedom and means to own a home is ingrained in our systems of democracy and capitalism. When homes are less affordable — as they are right now — we have an opportunity to remind ourselves about the social importance of homeownership.