There's no doubt that Americans, young and old, still believe in the American Dream of homeownership, despite their worry about the economy. A new quarterly consumer survey released by the National Association of REALTORS® reveals although only half of surveyed households believe the economy is currently improving, nearly all young renters eventually want to buy a home, and a convincing majority still view homeownership as part of their American Dream. A new index tracking the financial outlook of households also found that compared to earlier in 2015, an increasing share of households believe their personal financial situation will improve in the months ahead.
The Housing Opportunities and Market Experience (HOME) survey, which tracks real estate trends, including current renters and homeowners' views and aspirations regarding homeownership, indicates an overwhelming majority of current renters who are 34 years of age or younger want to own a home in the future (94 percent). Overall, 83 percent of polled renters have a desire to own, and 77 percent believe homeownership is part of their American Dream. The top two reasons given by renters for not currently owning was the inability to afford to buy (53 percent) and needing the flexibility of renting rather than owning (19 percent).
Among all households (renters and homeowners), only half of respondents believe the economy is currently improving, and 44 percent think the economy is actually in a recession. Renters were only slightly more optimistic about current economic conditions, with 57 percent believing the economy is improving. Regardless of their confidence in the U.S. economy today, over three-quarters (76 percent) of those who don't think the economy is improving still want to eventually buy a home.
Despite uncertainty about the economy's current performance, at least 84 percent of all households within all surveyed age groups and education levels believe owning a home is a good financial decision. At least 85 percent of surveyed households in each age category and across all education levels believe homeownership is part of their personal American Dream. The most appealing aspects of homeownership cited by those with this feeling include a place to raise a family (36 percent), owning their own place (26 percent) and a nest egg for retirement (14 percent).
The survey found more homeowners (82 percent) than renters (68 percent) believe that it's a good time to buy a home. Among current owners, 61 percent believe it is a good time to sell a home.
Reflecting on the ongoing recovery of home values throughout most of the country, 89 percent of respondents said home prices in their communities have either risen or stayed the same in the past year. Looking ahead toward the next six months, 91 percent believe home prices in their community will increase or stay the same.
The HOME survey also calculates a monthly Personal Financial Outlook Index measured by household type, age, income and type of location. Since tracking began in March 2015, the index has slowly trended upward to its highest current reading in December 2015, reflecting stronger confidence that respondents' financial situation will be better in six months. The survey finds that currently, renters, younger households and those living in urban areas are more optimistic about their future financial situation.
Results of the HOME survey are derived from a sample of U.S. households surveyed from March through early December 2015, via random-digit dial, including half via cell phones and the other half via land lines. Approximately 900 qualified households responded to the survey. A total of 9,034 household responses are represented in the survey.
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.
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