California's young renters continue to value homeownership and hope in time to achieve the American dream, according to the "2013 Renter Survey" conducted by the California Association of REALTORS® (C.A.R.).
Nearly three-quarters of California renters rated homeownership as "important," and more than half of renters (52 percent) said they plan to buy a home in the future. This is the first renter survey by C.A.R. The survey was conducted by telephone with 800 home renters statewide in the spring, and online in the summer with 875 home renters.
Demographic profiles of the two sets of respondents of the survey varied some, with the most significant difference being their age. The median age of online respondents was 39 and was 45 for telephone respondents. While almost half of all respondents believed that gaining equity and investing for their future and their children's future was an advantage of homeownership, online respondents were twice as likely to carry that belief and three times as likely to believe in freedom gained from homeownership.
The top advantages of homeownership that renters surveyed cited included building equity, freedom to do what they want with their home, pride of ownership, stability, and tax benefits as the top advantages of homeownership. The top three reasons the renters disliked about renting were a lack of building equity (24 percent); the inability to make changes to their living environment (14 percent); and unpredictable rent increases (15 percent).
"There is nothing like owning your own home," said Carolyn Miller, president of the Silicon Valley Association of REALTORS® (SILVAR). "Owning a home is an investment because of equity gains and overall appreciation. During the recession, we saw values substantially decline, but they bounced back quickly, especially in California."
"When you own your own home, you have the freedom to remodel and redecorate. Studies show high homeownership rates contribute many important social benefits to communities, including higher education attainment and civic involvement, lower crime rates and welfare dependency," added Miller.
Overall, 26 percent of those surveyed previously owned a primary residence. Their reasons for selling include the need to move for family reasons (24 percent); foreclosure (14 percent); the work-related (13 percent); short sale (11 percent); and bankruptcy (3 percent).
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.