Do Americans Still Want the Dream of Homeownership?

Will all that’s happened in the economy and the housing market the last couple years, have Americans soured on the idea of owning a home? Fannie Mae conducted a study to find out and discovered Americans still strongly desire to own homes.

“Despite Americans’ strong desire to own their homes, our study reveals that life events are greatly influencing families’ decision to rent,” said Doug Duncan, Fannie Mae vice president and chief economist. “This trend, coupled with the housing crisis, has caused consumers to approach homeownership with greater caution and thoughtfulness.”

The Fannie Mae 2010 Own-Rent Analysis found that 51% of current owners and renters say the housing crisis has not affected their overall willingness to buy a home over the long term. In the near-term, however, Americans have their doubts about buying.

Among renters, 59% said they would continue to rent, which is up 5% from when the survey was last conducted at the start of 2010.

Various demographic trends such as fewer married couples and less families with children resulting in shrinking households — coupled with financial caution among consumers — are contributing to an increased willingness to rent. One-third of Americans surveyed here would be more likely to rent their next home than buy, up from 30 percent in January 2010.

More than half (57%) of renters believe financial benefits are the best reason for renting a home. Based solely on current household finances, 52% believe they are better off renting (compared to 24% among the population at large.)

Perhaps the greatest impact can be found with younger Americans. Since the housing crisis, homeownership for 25 to 29 years has declined 11 % since peak rates, compared to a decrease of 5% among those 35 to 44 and an even smaller decrease for those 45 and up.

What all this boils down to, my fellow real estate agents and investors, is rental properties are a hot investment both now and in the foreseeable future.  So what are you waiting for? Get out there and sell, sell, SELL!