Homeownership: Still the American Dream
Yesterday, Fannie Mae released their National Housing Survey for the second quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:
Most Important Reasons to Buy a Home
When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:
- It means having a good place to raise children and provide them with a good education
- You have a physical structure where you and your family feel safe
- It allows you to have more space for your family
- It gives you control of what you do with your living space (renovations and updates)
The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:
- 65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
- 56% believe that homeownership has more potential as an investment than any other traditional asset class.
- 69% think that now is a good time to buy a home (this number has increased in each of the last two quarters)
Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.
- 63% of renters have aspirations to someday own their own home
- 72% of renters think that owning is superior to renting
- 95% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 82% of renters see renting as a positive experience (17% see it as a negative experience)
- 96% of homeowners live in a single family residence while 46% of renters live in a multi-unit building
Even in difficult times, Americans still realize the value of homeownership.