Housing is a key element in our economy. It has proven to be a solid long-term investment for American families and it generally provides long term returns regardless of a fluctuating stock market.

According to the National Association of Realtors and the US Federal Reserve Board, homeownership is how many families begin to accumulate wealth.

Housing is not a quick return in most instances. When purchased for the long term, housing is one of the safest investments that a consumer can make. It has many benefits. In addition to a buildup of equity, it also has tax advantages and a home provides shelter. For my clients who are in a rental situation and their residence is not short term, my favorite analogy to give is that a person has to live somewhere. If you purchase a home and sell it in two years and don't realize any loss or profit, you lived somewhere for two years for free.

Dollar for dollar the rate of return on an individual's cash downpayment on a house is substancial. Typically, the only real cash that a homebuyer must have is a downpayment and maybe some closing costs but the appreciation that is realized is based on the total value of the property.