Prescott Homeowners Gained Wealth from Home Appreciation

New data from the National Association of Realtors reveals that homeowners in Prescott accumulated more than $200,000 in wealth as their homes appreciated through the last 10 years, banking $60,000 more than the national average in that same category. The data, which was featured prominently in NAR’s new report, Wealth Gains by Income and Racial/Ethnic Group, speaks to the value agents and realtors bring to consumers when helping buy and sell homes that build generational wealth.

The press release quickly gained national attention from a host of news organizations such as CNN and USA Today for the significance it represents to homeowners in top-performing locations named out of the 200 largest metro areas that comprised the study.

In Prescott, 68% of low-income households (earning no more than 80% of the area’s median income) own their own home, the second highest in the nation. For perspective, the median household income in Prescott is $20,940, while the median home value is $294,010. While three additional metro areas in Arizona made the list, Prescott came out on top for homeownership rates and wealth gains among low-income households. Prescott also topped the list for homeownership rates among upper-income households and ranked second in the nation for the highest share of upper-income households in a three-way tie with Barnstable Town, Massachusetts, and Beaumont, Texas.

Although black homeowners experienced the smallest wealth gains among any other racial or ethnic group, these owners were able to accumulate more than $115,000 on average in wealth in the last decade. Asian homeowners gained the most wealth in the past decade, followed by Hispanic Americans.

“This analysis shows how homeownership is a catalyst for building wealth for people from all walks of life,” said Lawrence Yun, NAR’s chief economist. “A mortgage is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

A robust real estate market is a key component in the advancement of the local economy, the principles of fair housing and the dream of homeownership for every American. Each home sale at the median generates roughly $113,000 in economic impact that ripples throughout the community. Additionally, 90% of realtors identify as small business owners, with the majority being women. QCBN

By Suzanne Westrum

To view the full press release from NAR: https://www.nar.realtor//

Suzanne Westrum is the CEO of the Prescott Area Association of REALTORS (PAAR).

The Prescott Area Association of REALTORS® (PAAR) is the trade association representing almost 2,500 REALTORS® serving the greater Quad Cities area. Established in 1944, PAAR’s mission is to advocate for private property rights, and provide its members with resources to foster their business success. The term REALTOR® is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS®.

About NAR

The National Association of REALTORS® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.