Housing prices have been on the rise over the past decade, making the prospect of homeownership inaccessible to many Americans. In light of this growing issue, a question has recently emerged: “Does homeownership really build wealth?” Experts seem to think so, and Assistant Professor of Urban Planning José Loya appeared on Marketplace to share his perspectives.

According to Loya, the accrual of wealth from homeownership primarily originates from mortgage interest deduction, a type of government subsidy that makes homeownership financially appealing. Socioeconomic disparities, however, impact this level of wealth accumulation. There has been found to be a disproportionately higher value of homes and wealth accumulation in majority-white communities compared to their minority counterparts. Cities with more job opportunities like Los Angeles also tend to have higher housing costs while places with fewer prospects tend to have lower costs, further exacerbating the issue.

“Homeownership can be a heavy burden if your job is unstable and your income fluctuates,” said Loya. With the uncertain future of both the job and housing market, Loya suggests exploring alternate means of building wealth, such as starting a business.