Pittsburgh homeownership is an avenue toward building wealth. Wealth building is simply increasing the net value of your total assets. Calculating your net worth is simple: Subtract the amount of money you owe (liabilities) from the value of your possessions (assets).

There are two ways you can build your net worth through homeownership:


Owning a home allows you to build equity over time. With each mortgage payment you make, a portion goes towards reducing the outstanding balance. As the years pass, more of your payment is applied to the principal. This gradual reduction in your mortgage balance translates into increased equity. You accumulate wealth and increase your net worth by consistently paying down your mortgage.


Real estate in Pittsburgh has historically appreciated, making it an attractive investment. Pittsburgh tends to experience a stable housing market, not a boom-and-bust market. You can benefit from this appreciation by owning a home, leading to substantial wealth growth.

A simplified example of wealth building through Pittsburgh homeownership:

You purchased a home for $400,000 (to simplify the calculation, you made no down payment.) Over the next 10 years, your mortgage payments reduced your outstanding balance by $100,000, and your home increased in value to $500,000. The value of your home as a net asset has grown to $200,000 [$500,000 (market value) – $300,000 (mortgage balance).] You would have missed $200,000 in wealth if you had rented during this time.

Growing equity not only enhances your net worth but also opens up opportunities. The equity you’ve built becomes valuable. Some borrow on their home’s equity to make home improvements, or you can use your equity to purchase your next home.

Homeownership vs. Renting

Unlike renting, homeownership offers stability in terms of monthly payments. With a fixed-rate mortgage, your monthly payment remains the same, allowing easy budgeting and financial planning. On the other hand, renters often face annual rent increases, affecting their ability to save and invest.

The National Association of Realtors (NAR) created a report that details homeownership trends and statistics. The report concluded that a homeowner’s net worth was about $300,000, while the wealth of a renter was about $8,000. Therefore, a homeowner’s net worth is roughly 40 times higher than a renters. From this information, it seems homeownership is a key factor in your net worth.

Gallup Poll found that real estate remained a favored investment by Americans since 2013. A significant advantage of homeownership is that you have a place to live, unlike other types of investments.

Pittsburgh homeownership offers a way to build wealth and secure your financial future. Factors that can help you grow your net worth are decreasing your mortgage principal, property appreciation, and leveraging your accumulated equity. Homeownership’s stability contributes to long-term financial security.

If you are ready to improve your wealth building through homeownership, contact me here, by phone at 412-848-3907, or by email at Kim.Esposito1@pittsburghmoves.com to schedule a free consultation to discuss your real estate needs.