Teacher Next Door Blog

Infographic: Home Ownership Net Worth Comparison
Source: Forbes

Teacher Next Door’s stated mission is to increase home ownership, support community development and increase access to affordable housing, free from discrimination. So why is home ownership so important? The following research from multiple sources speak clearly to the importance of home ownership in America.


  • Homeowners net worth, on average, is more than 3,600 percent higher than renters. (Source: Forbes)

  • Children of homeowners are significantly more likely to stay in school until age 17 than children of renters, especially in low-income households, according to a study in the Journal of Urban Economics.

  • Children in home owning families outperform children in renting families in both math and reading achievement tests, even when other factors are the same. These children will have fewer behavioral problems, higher educational attainment and greater future earnings, according to a study by an Ohio State University Ohio State University economist.

  • The graduation rate for children of homeowners is 19 percent higher than for renters, and they are twice as likely to acquire some post secondary education, according to a study in a journal published by the Federal Reserve Bank of New York.

  • A study by the Federal Reserve Bank of Boston of homes with a student about to enter college found that a modest increase in home value for homeowners led to an increase in the child’s earnings later in life, while an increase in a property’s value for renters led to a decrease in the child’s earnings.

A safe, decent, affordable home is like a vaccine,” Dr. Megan Sandel of the Boston University School of Medicine testified to Congress. “It literally prevents disease. A safe home can prevent mental health and developmental problems, a decent home may prevent asthma or lead poisoning, and an affordable home can prevent stunted growth and unnecessary hospitalizations.”

Is Home Ownership Still Affordable?

Home prices have risen sharply over the past twelve months, which of course is why owning your own home represents such a good investment. However, despite the recent rise in prices, finding a home that works within your budget may not be as hard as you think.

In recent months, home prices have stabilized in many markets across the U.S., and even though the Federal Reserve has increased its benchmark interest rate, it was adjusted from near an all-time low, to a more typical level. So, mortgage rates today are still at an affordable level for most buyers and are far below some of the double-digit rates of the past.

Should I Wait to Buy a Home?

It may be tempting to want to wait for home prices or interest rates to drop, but that could prove to be a costly mistake. The fed has promised to boost interest rates again. And according to Steve Parks, National Director of Next Door Programs, “Even though home prices have stabilized, there’s no cliff dive on the horizon. The underlying fundamentals of the market ate still strong.”

“Even though home prices have stabilized, there’s no cliff dive on the horizon. The underlying fundamentals of the market ate still strong.”

The good news is, with the recent change in market conditions, many cash investors, including Zillow, have stopped, or slowed their home buying spree. Inventory has started to increase and there are less instances of purchase offers turning into bidding wars. In fact, Zillow recently announced plans to sell 7,000 homes, and according to Bloomberg, as many as two-thirds were being sold for less than the company paid for them.

So, despite some of the gloomy headlines, there are some tremendous opportunities in this market, and this may be an excellent time to buy. Purchasing a home now, could set you up for success in the future.

What Assistance is Available?

Available in all fifty states and DC, Teacher Next Door and Next Door Programs is the largest national home buying program in the United States, with access to over thirty-five different grant and down payment assistance programs. 


Next Door Programs offers grants of up to $8,000.00. Grants never have to be repaid and may be comprised of any combination of state, Federal and privately funded programs.

Down Payment Assistance

Through Next Door Programs, you could qualify for down payment assistance of up to $10,681.00. Like the grants, the down payment assistance programs may be comprised of any combination of state, Federal and privately funded programs. Most down payment assistance programs require some form of repayment, although some state programs may offer a forgivable loan, after a certain period. (Three years in some cases.) 


Through the program, you may be able to qualify for a state-specific government program, such as Arizona Home in Five, California CalPLUS, Colorado FirstStep, Iowa IFA, Nevada NHD Home is Possible, Ohio Your Choice, Texas 5-Star Advantage or Utah UHC. Next Door Programs also utilizes national programs, such as Chenoa Fund, Home Ready and others. When you apply, a Next Door Certified Program Specialist will help you determine which loan and assistance programs will help you receive the maximum benefits and which programs may be combined.


While it’s true that home ownership will not solve every problem, home ownership still matters, possibly now more than ever. And with increasing inventory, fewer multiple-offer situations, and a wide variety of home buyer assistance programs, now may be an excellent time to buy. Next Door Programs is proud to help families across the United States realize their dream of becoming homeowners.

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Posted by Teacher Staff on July 9th, 2023 10:39 AM


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