Each quarter, Fannie Mae releases their National Housing Survey. They survey the American public on a multitude of questions concerning today’s housing market. Here they are for the most recent report:
84% of the general population believes that owning a home makes more sense than renting.
The Most Important Reasons to Buy a Home
The study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:
1. It means having a good place to raise children and provide them with a good education
2. You have a physical structure where you and your family feel safe
3. It allows you to have more space for your family
4. It gives you control of what you do with your living space (renovations and updates)
The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:
§ 63% of the general population believes that homeownership is a ‘safe’ investment.
§ 53% believe that homeownership has more potential as an investment than any other traditional asset class.
Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.
§ 64% of renters have aspirations to someday own their own home
§ 70% of renters think that owning is superior to renting
Bottom Line
The belief in the value of homeownership grows each time this survey is released. Not only does it serve as a shelter and provide a sense of ownership, it also typically makes great financial sense as well.
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