Americans overwhelmingly believe owning a home is a good financial
decision and a majority of renters say homeownership is one of their
highest priorities for the future, according to a survey by the National
Association of Realtors®. The 2013 National Housing Pulse Survey
also found that renters are thinking more about purchasing a home now
than in past years, while the number of people who say they prefer to
rent has declined.
“Homeownership matters to Americans who consistently realize the many
benefits it provides to communities, families and the nation’s
economy,” said NAR President Gary Thomas,
broker-owner of Evergreen Realty, in Villa Park, Calif. “Due to high
housing affordability and today’s interest rates it makes sense for
people to consider homeownership over renting. In fact, in many parts of
the country it’s cheaper to own a home than to rent one. Therefore,
it’s no surprise that renters recognize that owning a home offers
tremendous long-term benefits and is an investment in their future.”
The survey, which measures consumers’ attitudes and concerns about
housing opportunities, found eight in 10 Americans believe buying a home
is a good financial decision and more than two-thirds (68 percent) said
now is a good time to buy a home. Since the last survey in 2011, more
renters are now thinking about purchasing a home, up from 25 percent to
36 percent, while those who say they prefer to rent dropped from 31
percent to 25 percent. Half of renters say that eventually owning a home
is one of their highest personal priorities, up from 42 percent to 51
percent.
Attitudes toward the housing market have also improved over the
years. Nearly four in 10 Americans (38 percent) identified an increase
in activity within their local housing market in the past year, compared
to just 22 percent who reported a slowdown in activity. By contrast, in
2011 some 51 percent reported a slowdown in activity. There was also
less concern than in the past about the drop in home values; a majority
said housing prices in their area are more expensive than a year ago.
In addition to these improved attitudes about the housing market,
respondents also showed an improved outlook about the national economy.
Just under half (48 percent) said job layoffs and unemployment are a big
problem, down from 61 percent in 2011. The concern over foreclosures
showed a steep decline from 2011 when 47 percent characterized
distressed properties as “very” or a “fairly big problem”; today only 29
percent say it’s a problem.
For many Americans, the perceived obstacles to homeownership have
remained unchanged over the years; low wages, student loan debt, and
little savings for a down payment and closing costs continue to make it
difficult for many to become homeowners. Respondents across the board –
young and old, college graduates and non-graduates – consider student
loan debt to be a large obstacle.
“Student loan debt is a concern for many consumers in today’s market,
especially first-time buyers,” said Thomas. “Buyers with student loan
debt may find it difficult to access mortgage credit, as well as save
for a down payment. Pending mortgage finance regulations requiring
higher down payments could also contribute to the already tight lending
environment. Realtors® are working with regulators to address
this issue and are committed to making sure those who are willing and
able to own a home have the opportunity to pursue that dream.”
When asked for reasons why homeownership is important, respondents’
top reasons underscored basic American values and freedoms; they were
building equity, wanting a stable and safe environment, and the freedom
to choose where to live. While these reasons have remained virtually
unchanged since 2011, they do vary slightly according to demographics.
The top scoring reason for African-Americans and Hispanics was that
homeownership provides stability and a safe environment; women also
placed more emphasis on environmental factors than men. Non-college
graduates placed stronger emphasis on public schools, owning a home
before retirement, and living in a safe and stable environment
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