01 Aug Owning a Home Still Remains a Top Priority for Renters
Although there have been some significant shifts in real estate over the past several years, 72% of American renters still state that owning a home is among their top priorities. According to The National Association of Realtors (NAR) 2011 National House Pulse Survey, renters still believe that renting is only a temporary solution, with home ownership being the ultimate end goal.
One of the biggest challenges currently preventing these people from purchasing homes resides in obtaining the credit needed to do buy. This may continue to be a problem, and grow worse, if the proposed Qualified Residential Mortgage law goes into effect. The law would require a 20% down on all home purchases. According to the NAR study, 51% of middle class homeowners stated that if they were forced to put 20% down on their home purchase, they wouldn’t have been able to buy.
Of course, the housing marketing and the economic climate are tightly aligned. The current national unemployment rate is hovering around 9%, with an even larger number of people who are actually currently unemployed. This statistic, in addition to the proposed law, could make the dream of homeownership a bit more challenging. On the reverse side, the purchase of homes would ultimately increase consumer spending and assist with jobs.
Ultimately, the study shows that homeownership still matters a great deal to individuals who do not currently own one. The feeling of safety and stability are things that can be hard to find in a renting environment. In addition, owning a home provides financial security over the long-run.