Mark Twain and homeownership are both iconic pieces of the American experience. And like what happened to Twain in 1897, recent reports of homeownership’s death have been greatly exaggerated. Ever since the housing bubble burst, many so-called experts have predicted the end of homeownership as part of the American Dream. Today, we want to expose some of these myths.
MYTH #1:
After the housing crash, Americans would no longer believe in homeownership.
FACT:
While homeownership 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.
- 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. Even 76% of those over 65 years old plan to buy a home in the future. (Joint Center for Housing Studies at Harvard University)
MYTH #2:
Those families that were forced from their homes during the housing crash would never look at homeownership in a positive light again.
FACT:
- Many of the sellers who lost their home to a short sale or foreclosure over the last six years are re-entering the housing market as purchasers. It is projected that over 700,000 people in this category could be in the market for a home in 2013 and that the number will more than double to over 1.5 million in 2014. (Moody’s Analytics)
- Nearly 80% of those homeowners who decided to strategically default (walking away from the house and mortgage) over the last few years have expressed a desire to buy a home again within the next 12 months. (YouWalkAway.com)
MYTH #3:
Young adults, after seeing their parents suffer major loses of equity, will not embrace homeownership especially as a financial investment.
FACT:
Not one study has substantiated this myth. Recent studies have actually proven the exact opposite:
- 72% of young adults between 18-35 years old see homeownership as part of their personal American Dream. (Trulia)
- 75% of young adults between 18-35 years old see homeownership 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)
Obviously, the reports of the death of homeownership in America were GREATLY exaggerated.
