Real Estate Articles

REALTOR®: Americans still value home ownership

Despite the recent housing market downturn and its impact on home values, Americans of all backgrounds still strongly aspire to own a home some day. In fact, majority of Americans surveyed by Fannie Mae in the fourth quarter still prefer home ownership as opposed to renting.

The fourth-quarter 2011 National Housing Survey is based on interviews with more than 3,000 Americans from October to December 2011, and reveals across all education levels and demographics, two-thirds of renters surveyed said they hope to buy a home in the future. Overall, renters, those with lower levels of education and people with lower incomes cite potential difficulties in getting a mortgage, complexity of the mortgage borrowing process, financial and employment concerns as major reasons not to buy a home. Non-financial factors such as safety and quality of local schools continue to be the top reasons for buying a home across all income groups.

"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."

Americans realize there are more than financial advantages to home ownership. "Along with the financial benefits, research has shown that home ownership brings substantial social benefits for families, communities, and the country as a whole," said Suzanne Yost, president of the Silicon Valley Association of REALTORS®.

Here are just some of the documented social benefits of home ownership compiled by the National Association of REALTORS®:

• Increased charitable activity
• Civic participation in both local community and national issues (including voting)
• Greater awareness of the political process
• Higher incidence of membership in voluntary organizations and church attendance
• Greater social capital generated
• Greater attachment to the neighborhood and neighbors
• Higher student test scores by children's living in owned homes
• Higher rate of high school graduation thereby higher earnings
• Children more likely to participate in organized activities
• Homeowners take on a greater responsibility, such as home maintenance and acquiring the financial skills to handle mortgage payments and those skills transfer to their children
• Lower teenage delinquencies
• General increase in positive outlook to life, higher life satisfaction, self-esteem, happiness, and perceived control over their lives
• Better health outcomes, better physical and psychological health
• Less likely to become crime victims
• Maintenance behavior of individual homeowners is influenced by those of their neighbors

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.

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