A few years ago, the downturn of the housing market led to many predictions of a “renter nation” and the end of home ownership. To borrow a phrase from Mark Twain, the death of home buying has been greatly exaggerated! To prove that home ownership is alive and well, I’m sharing a few facts from KCM, along with my own views!
Home Ownership Remains the American Dream
While home ownership has fallen from a high of 69.2% in 2004, to 65.4% at the end of 2012, the desire to own a home is still strong. A number of consumer surveys prove this:
73% of Americans say it is a good time to buy a home. (Fannie Mae)
70% of Americans see homeownership as part of the American Dream. (Trulia)
In every age group from 25 to 65 years old, over 80% plan to buy a home in the future.
76% of those over 65 years old plan to buy a home in the future. (Joint Center for Housing Studies at Harvard University)
Home Ownership Remains Desireable Despite Foreclosure Experience
It has also been believed that families who lost homes to foreclosure during the housing bust would have negative views about home ownership. Again, consumer surveys say otherwise!
According to Moody’s Analytics, many former homeowners who experienced a foreclosure in the last six years are now re-entering the housing market as home buyers. Analysts predict that over 700,000 people in this category could be in the market for a home in 2013. The number of potential buyers could reach 1.5 million in 2014.
Even those who willfully defaulted on their mortgages have indicated the desire to own a home again. Nearly 80% of these former homeowners say they would like to own a home within the next 12 months. The controversial website, YouWalkAway.com would be the last pro-ownership source anyone might expect, but their own clients provide this metric.
Generation Y Believes in Home Ownership
Another notion that sprang up from the housing crisis, was the idea that young adults would reject home ownership. This seemed to be a logical assumption after so many of them saw their parents lose home equity, or experience foreclosure. Yet recent studies show the opposite sentiment!
72% of young adults between 18-35 years old see home ownership as part of their personal American Dream. (Trulia)
75% of young adults between 18-35 years old see home ownership as an indicator of success. (Realogy)
94% of young adults under 25, and 96% between the ages of 25-34, plan to buy a home. (Joint Center for Housing Studies at Harvard University)
79% of young adults under 25 years old, and 86% of young adults 25-34, believe that owning is a better financial decision than renting. (Joint Center for Housing Studies at Harvard University)
Your Guide to Home Buying in Chevy Chase and Bethesda!
The best evidence that the American Dream is alive and well in Metro DC is the fact that home inventory is in short supply! Our quality of life and employment opportunities continue to attract new residents!
If you are planning to buy a home in Chevy Chase, Bethesda, or the greater DC area, get the expert advice and professional representation you need in today’s competitive market! My local expertise and dedication to service will help you succeed in your home ownership goals!