Born in the USA
The number of homeowners in the US has dropped to a 35-year low, with only around 60% owning their own property now. Home ownership was once the mainstay of the American dream. However, perceptions about the importance of owning a property have changed since the mid ’80s, when 79% of Americans placed a great deal of importance on home ownership. These days, only 61% of those polled believe that owning a home forms part of that dream. The situation was undoubtedly aggravated by the 2008 crash, which saw around five million Americans lose their homes.
Although there is a fair amount of concern surrounding the ownership trend, experts maintain that the situation will not continue in the long term, arguing that skyrocketing rentals will force tenants into buying their own homes. The other aspect that has already started to impact on sales is the buying power of millennials. This sector made up 32% of the US housing market during 2014, up from 28% recorded in 2012.
On the bright side, the Zillow Housing Confidence Index notes that around 5.2 million tenants say they expect to buy a home this year – up from last year when 4.2 million had the same plan.
Owning a home in the US might have lost a little shine among those who were badly burnt during the crash. But memories of those trying times are fading and young adults are beginning to understand the importance of home ownership.