Since the birth of our nation, homeownership has always been considered a major piece of the American Dream.
This excerpt from a Forbes article says it well:
"The magic of America lay not only in its sense of opportunity, but also in the belief that life could in every way be shaped by the individual. People traveled here not just for religious freedom, but because in America anything seemed possible.”
A paper published a little over a year ago - just prior to the shelter-in-place orders issued -concurs:
“Homeownership is undeniably the cornerstone of the American Dream, and is inseparable from our national ethos that, through hard work, every American should have opportunities for prosperity and success. It is the stability and wealth creation that homeownership provides that represents the primary mechanism through which many American families are able to achieve upward socioeconomic mobility and greater opportunities for their children.”
If anything remains constant - even with all that this last year has brought on - it would be the American view of homeownership.
A survey of prospective homebuyers released by realtor.com last week reveals that becoming a homeowner is still the main reason this year’s first-time homebuyers want to purchase a home. When asked why they want to buy, three of the top four responses center on the financial benefits of owning a home. The top four reasons for buying are:
· 59% – “I want to be a homeowner”
· 33% – “I want to live in a space that I can invest in improving”
· 31% – “I need more space”
· 22% – “I want to build equity”
The survey also reports that 62% of millennials say a desire to be a homeowner is the main reason they’re buying a home.
While reporting on the survey, George Ratiu, Senior Economist at realtor.com, said:
“Americans, even millennials who many thought would never buy, have a strong preference for homeownership for the same reasons many generations before them have — to invest in a place of their own and in their communities, and to build a solid financial foundation for themselves and their families.”
Odeta Kushi, Deputy Chief Economist for First American, says this about millennial homeownership:
“Millennials have delayed marriage and having children in favor of investing in education, pushing marriage and family formation to their early-to-mid thirties, compared with previous generations, who primarily made these lifestyle choices in their twenties…Delayed lifestyle choices delay the desire for homeownership.”
Kushi goes on to explain:
“As more millennials get married and form families, millennials remain poised to transform the housing market. In fact, the housing market is already experiencing the earliest gusts of the tailwind.”
As it always has been and very likely always will be, homeownership continues to be a major component in every generation’s pursuit of the American Dream.
Image by 460273 from Pixabay