Building wealth through the power of compounding home equity versus renting
Strategy
00Demonstrate Real Estate Wealth Generation: Investigate and visualize why owning a primary residence is a significant generator of wealth.
01Visualize FHFA House Price Index Data: Create visual representations that effectively convey the correlation between homeownership and FHFA House Price Index data by neighborhood (Zillow Home Price Index).
02Hypothesis Testing: Compare the costs involved in renting a "rent-controlled" primary residence over 30 years versus purchasing a home.
Craft
Advocacy
The Zillow Home Value Index (ZHVI) is a metric that provides a smoothed and seasonally adjusted representation of the average home value and market trends within a specific geographic area and housing category. It captures the typical value for homes in the 35th to 65th percentile range in terms of value.
This index is a valuable tool for tracking and understanding housing market changes, making it useful for homeowners, real estate professionals, and policymakers to gauge the state of the local real estate market.
One of the axioms of investing is that the stock market outperforms other types of investments. If you were to take the down payment and invest it in the S&P 500, based on historical data, it would yield an average return over the same time period.
Results
96%
UX Research
Primary feedback focused on the accuracy of the data.
72%
UX Research
Requested more features to validate there unique financial situation.
+/- 2%
FHFA HPI Data
A Subject Matter Expert suggested that other housing datasets might better represent the appreciation of Single-Family Homes than the FHFA datasets.
The variety and accuracy of data required to establish customer trust prevented achieving the necessary value for a sufficient return on investment.
Collaborators
Aspire Equity Estimator
Ann Podesta, Realtor
Kerri Monday-Naslund, Real Estate Broker
