Why It’s Important that Homeownership Grows in America
Homeownership in America has climbed to 65.3 percent — the highest in the last six years and it continues to grow. The National Association of Home Builders reported there were over 2.7 million homeowners added to this in the first quarter of the year. With consistent low rates, more buyers are entering the market despite the fluidity in the current economy. The housing market shows confidence.
According to a recent study conducted by Gallup, Real Estate ranked first, at 35 percent, as the top long-term investment by Americans. This marks 7 years of being in front, with stocks holding second at 21 percent.
The numbers prove the importance and growth of homeownership in a report from the National Association of Home Builders, showing an increase of ownership in each generation for the first quarter of 2020. First-time buyers, the majority under the age of 35, saw the biggest growth at 1.9 percent increase from a year ago.
- In second, households ages 35-44 experienced a 1.2 percentage points gain,
- ages 55-64 saw a 0.9 percentage point increase,
- the 45-54 age group with a 0.8 percentage point gain,
- and the 65+ group age was up by 0.2 percentage points.
It’s no news that high prices combined with slow wage growth kept affordable housing a national major issue. The Chief Economist at Realtor.com says this recent uptick is a good indicator of the middle-class financial well-being. A strong middle-class can influence consumer stability and economic growth.
Real estate remains a significant investment. Not only does it provide stability and wealth-building opportunities individually, but it also plays a big role in building local economies. The taxes that homeowners pay go towards public and infrastructure improvements. The NAR actually showed the impact a newly constructed home has on a local community. See the image below:
Families and households tend to get involved in community events, gatherings, volunteering, which create a sense of unity, responsibility, and belonging.
There are many values people hold when owning a home that has a long-term and widening effect. Real estate tends to be a safer investment because more wealth is built than any other asset. Compared to other real estate investments, single-family homes have the highest return, have the potential to generate passive income, support the public economy, and are always in need.
Experts do believe that the economy will continue to recover going into the second half of the year. Economists and housing experts are keeping a close watch on the data and trends. The summer market is already producing more buyers, while sellers are starting to emerge with less caution. As homeownership grows, so does America’s economy. Right now, that seems to be everyone’s goal.
Are you interested in becoming a homeowner but not sure where to begin? Please reach out. My team and I will help guide you to real estate success.
This article is intended to be accurate, but the information is not guaranteed. Please reach out to us directly if you have any specific real estate or mortgage questions or would like help from a local professional. The article was written by Sparkling Marketing, Inc. with information from resources like Realtor.com, NAR, and NAHB.