The Case for Offering Employee Homeownership Assistance
Homeownership is one of the most powerful wealth-building tools available to individuals, yet for many employees, the dream of owning a home is becoming increasingly more difficult to reach. Rising home values outpacing wage growth, and high interest rates make it more challenging than ever for employees to transition from renting to homeownership. This is where HR departments and employers can make a significant impact by offering homeownership assistance benefits.
Home Appreciation vs. Wage Growth
According to a recent report from the National Association of Realtors (NAR), home values in Iowa have appreciated by 42.2% since the first quarter of 2020. In 2024 alone, the average home price gain in the state was 4.8%—an increase that outpaces the average annual merit increase for employees across Iowa.
This disparity underscores a pressing economic reality: employees’ wages are not keeping up with rising housing costs, making it harder for them to save enough for a down payment or qualify for a mortgage. As home values continue to rise, those who delay homeownership will find it increasingly more difficult to afford a home in the future.
Why HR Departments Should Prioritize Homeownership Benefits
For HR professionals, supporting employees' ability to buy a home is not just about financial wellness—it’s about strengthening workforce stability, retention, and recruitment. Studies consistently show that homeownership has profound benefits for both individuals and employers.
1. Enhanced Employee Retention & Reduced Turnover
Homeownership fosters a stronger sense of commitment to both a job and a community. Research from the Society for Human Resource Management (SHRM) indicates that homeowners are less likely to job hop, call in sick, or miss work for unexplained reasons.
2. A Competitive Edge in Talent Acquisition
Today’s workforce—especially Millennials and Gen Z—prioritizes benefits that enhance their quality of life. Many employees report being willing to accept a slightly lower salary if it means gaining benefits that improve their financial well-being. Homeownership assistance is a tangible way for companies to differentiate themselves and attract top talent in a competitive job market.
Additionally, in areas of Iowa where housing costs are high such as Des Moines, potential candidates may be deterred from considering job opportunities due to affordability concerns. By offering homeownership benefits, employers can incentivize relocation and make it easier for employees to settle in the area.
3. Increased Productivity & Job Satisfaction
Financial stress is one of the biggest contributors to employee disengagement and burnout. Offering homeownership benefits can reduce a major source of financial anxiety, leading to increased job satisfaction, productivity, and overall well-being. Employees who feel supported in their financial goals are more likely to be engaged and motivated in their work.
The Business Case for Homeownership Benefits
Forward-thinking employers have recognized the connection between homeownership and employee satisfaction. Providing homeownership benefits is not just an employee perk—it’s a strategic investment in workforce stability and longevity. As more organizations look to build resilient and committed teams, offering homeownership assistance can be the key to unlocking long-term success for both employees and employers alike.
