NEW ORLEANS – While homeownership rates in the U.S. have leveled at 65 percent since 2023, New Orleans’ homeownership rate has increased by 10 percent during the same period. Despite this growth, the city’s rate remains below the national average at 56 percent as reported by The Data Center and U.S. Census Bureau. Closing this gap is an opportunity for residents to invest in their own futures through homeownership, and one that Credit Human is focused on as a not-for-profit financial institution.
With so much attention paid to the financial benefits of owning an asset over renting, the psychological benefits and positive impacts on buyers’ physical health are often overlooked according to Credit Human.
“Homeownership comes with challenges of its own, but it’s worth the effort when you consider the emotional benefits that get less attention than the financial ones,” explains Jennifer “J.J.” Jaskierny, New Orleans Operations Manager, Credit Human. “The reduction of stress and increase in sense of well-being and overall happiness are as important as stabilizing your housing costs and building equity.”
As the economy fluctuates, the significance of owning a home becomes increasingly important according to Credit Human. While mortgage rates remain above the historic lows seen during the pandemic, median home prices in New Orleans have decreased 5.7 percent, according to Bankrate.com, making homeownership more realistic for many first-time home buyers.
One of the most powerful financial advantages of homeownership is the ability to build equity according to Credit Human. With each mortgage payment, homeowners gain ownership and steadily accumulate wealth. According to the U.S. Federal Reserve, the average homeowner builds more than $200,000 in equity over 30 years, highlighting the long-term value of investing in real estate versus renting.
Real estate also has historically proven to be a reliable investment, offering potential for profit through resale or borrowing against increased property value according to Credit Human. While markets fluctuate, studies show that properties generally gain value over time, making homeownership a long-term financial strategy that often outperforms traditional investments, Credit Human indicated.
“Homeowners can also take advantage of tax benefits, such as the mortgage interest deduction, which can lead to significant annual savings, providing additional financial relief for homeowners. Additionally, many state and local programs offer incentives for first-time buyers, further enhancing the overall affordability of homeownership,” according to a Credit Human statement.
For many, one of the most attractive features of homeownership is the stability in monthly payments afforded by fixed-rate mortgages, according to Credit Human. “Unlike renting, where landlords can increase rent annually, homeowners with fixed-rate mortgages enjoy predictable payments,” shares Credit Human Home Loan Production Manager Connye Bauer-Ingram. “This stability allows for better budgeting and financial planning, which is crucial for families striving for financial security.”
Another often overlooked benefit of owning a home is the freedom to customize and renovate spaces according to personal tastes and needs, according to Credit Human. Whether it’s a fresh coat of paint, a kitchen remodel, or a new garden, homeowners have the liberty to make changes that reflect their style and improve their living conditions. “Such improvements not only increase the home’s value, making it a sound investment decision in the long term, but also are personally rewarding in the near-term,” continued Bauer-Ingram.
Research published in BMC Public Health shows that homeownership is associated with reduced stress and improved mental health outcomes. According to Credit Human, the connection is plain to see: a sense of belonging, stability, accomplishment, personal expression, and control all contribute to stronger community ties and pride in a symbol of success.
As the post-pandemic housing market cools in New Orleans, it presents an opportunity for local residents to consider homeownership as a viable pathway to financial stability, community enhancement, and personal fulfillment, according to Credit Human. Credit Human and organizations like the Homeownership Alliance encourage individuals and families to explore their options, providing resources and information on how to take the first step toward owning a home.
“As we move forward in this dynamic market, the potential for homeownership to contribute positively to individual lives and communities is undeniable,” said Bauer-Ingram. “Investing in a home is not simply a financial decision – it’s a commitment to community and a step towards creating generational wealth.”
About Credit Human Credit Union
Credit Human is dedicated to providing financial solutions with integrity and purpose. With roots in San Antonio, Texas, and now New Orleans, we are committed to empowering our members through sensible products, personalized support, and a focus on building financial well-being and reducing financial stress in the communities we serve. For more information, visit CreditHuman.com.