Report: Homeownership Is a Precondition of the American Dream

Report: Homeownership Is a Precondition of the American Dream | Simplifying The Market

Hearth just released their 2017 State of the American Dream report which showed that Americans still see homeownership as an integral piece of the American Dream. The report confirmed that “all generations–including millennials–agree homeownership is very important to achieving the American Dream.”

Americans ranked “owning a home I love” higher than any other options (including “starting a family” and “finding a fulfilling career”) as an important part of the American Dream.

Despite some claims that homeownership’s importance to the American Dream is in decline, the report found that the dream of homeownership remains strong.

Of Americans who said they think achieving the American Dream is important, 70{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} think homeownership is important to the dream, and 41{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} think homeownership is very important to the dream.

What about Millennials?

Hearth addresses the desires of millennials by explaining:

“Contrary to popular opinion, millennials who want to achieve the American Dream are 5{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} more likely than Baby Boomers to think homeownership is important. And two-thirds of millennial renters view homeownership as important to the American Dream.

Although millennials are often portrayed as fickle and transient, they actually seek the stability of homeownership even more than their parents.”

Other Key Findings from the Report:

  • Homeowners are 126{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} more likely than non-homeowners to view homeownership as a way to build wealth. Nevertheless, homeowners still overwhelmingly associated homeownership with a family living space.
  • Homeowners are 24{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} more likely than non-homeowners to see homeownership as an achievement that reflects hard work.
  • Millennials are 77{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} more likely than baby boomers to see a home primarily as a way to build wealth.
  • Baby boomers are 98{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} more likely than millennials to see a home as a way to pass wealth down to children or family.
  • Millennials are 29{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} more likely than baby boomers to see a home as an achievement that reflects hard work–an outcome we expected given that many millennials are still working hard to afford their first homes.

Bottom Line

The report concluded:

“This survey revealed a powerful finding: Across demographic groups, homeownership remains a precondition of the American Dream.”

Source: Simplifying The Market

Happily Ever Homeowner

Happily Ever Homeowner | Simplifying The Market

Married couples once again dominated the first-time homebuyer statistics last year at 66{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} of all buyers, according to the most recent Profile of Home Buyers & Sellers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

Many couples are deciding to use what would otherwise be their wedding fund as a down payment on their first home, as unmarried couples made up 8{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} of all first-time buyers last year. If you’re single, don’t fret; you can still buy your dream home! Single women made up 17{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} of first-time buyers in 2016, while single men accounted for 7{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} of buyers.

According to a survey by the Wedding Report, the average cost of a wedding in the United States at the start of the year was $25,961, which equates to a 10{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} down payment on a median priced home.

A recent article from the New York Times found that many singles are now asking their parents to allow them to use the money they’ve saved up for their wedding day to instead buy a home.

In the case of Carrie Graham, a Protestant minister from Austin, TX, her parents had saved a ‘five-figure sum’ for her wedding and were more than willing to give her that money as a down payment on her dream home. Graham told The New York Times,

“Buying the home wasn’t me saying, ‘I’m never going to get married’ or I am going to get married.’ My own home had way more than equity benefits. It was a real gift to have a home in an extremely desirable neighborhood in a city that I love. It’s brought me joy.”

Bottom Line

More and more first-time homebuyers are finding a way to purchase their dream homes, even if that means delaying their dream weddings.

Source: Simplifying The Market

Better To Buy Now as 2018 Prices Predicted to Continue Rising 

The latest report of the Case Schiller Home Price Index published in May, 2017, indicates that sooner is better when it comes to buying a house.  Why?  Twenty major metro areas have seen home prices increase 5.7{12ca24a05342dbb53daaf6ac9e83dcd1d4a135542302ef678e31135aa120b5f7} over last year.  If this increase holds true, a house that costs $200,000. this year will cost $211,400!

Source: Better To Buy Now as 2018 Prices Predicted to Continue Rising – Tim & Julie Harris® Real Estate Coaching