Survey: Homeownership Still Preferable to Renting
April 4th, 2012
April 4th, 2012
Even though home values are down nationwide, the majority of Americans surveyed by Fannie Mae in the fourth quarter of 2011 continue to want to own versus rent their home. Nearly two-thirds of Americans currently renting homes want to buy a house at some time in the future.
Americans, across all education levels and demographic groups, think it makes more sense to own rather than rent. Safety and the quality of local schools still are the top reasons for buying a home.
“In spite of the impact of the housing crisis on home values and homeownership rates across the country, Americans by and large still hope to become homeowners,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Some may not be financially positioned to own a home in the near future, but Americans may begin to revisit that aspiration as employment and household balance sheets improve over the coming years.”
Renters specifically cited the following factors keeping them from buying a home now:
Compared to mortgage borrowers, renters consistently think it would be difficult for them to get a home. They cite financial issues as the main reason why they cannot buy a home.
Other findings include:
While Americans with higher education and income levels think buying a home is a safe investment, only 63% of Americans believe homeownership has the highest investment potential.
Future improvements in employment and personal finances, a pickup in interest rates in response to stronger economic growth, and stabilizing home prices may lead Americans to become homeowners versus renting in the future.
If you’re ready to stop renting and buy a home, contact Grandview Lending. We’ll work with you to explain the home loan process and evaluate your current situation to determine the right lending solution based on your circumstances.
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