Americans are optimistic for the future. Isn’t that the American way (or at least for those young whipper-snappers out there)? Nearly all renters 34 years of age or younger questioned in a new survey from the National Association of Realtors® say they want to own a home in the future.
When I was 19 years old I was chomping at the bit to own my own home. I got my wish and more. I found three homes for sale on one lot. I made friends with the man that had built all three, had lived in one for some sixty years, and rented out the other two. He took a small down payment, carried back a second, and I somehow convinced a lender to loan me the rest. I was a homeowner plus two.
Now this survey asked 9,000 consumers whether or not it’s a good time to buy or sell a home and about their expectations.
“Despite entering the workforce during or immediately after the worst of the financial and housing crisis, the desire to become a homeowner appears to be a personal goal for a convincing majority of young renters,” says NAR Chief Economist Lawrence Yun, adding that market conditions are creating a “sizeable, pent-up demand for buying.”
While responses have been steadily becoming more positive overall within the index, the most optimistic segments were younger households, renters, and those in urban areas. “Young adults, who make up the majority of all renter households, are typically more optimistic about their future,” says Yun.
Isn’t that the truth? At 19 years old, I didn’t doubt for a second that I could purchase those homes. I really wanted them, and the fact that my house also came with a one car detached garage really sold me. Well, sort of. You might have been able to get a Smart Car into it if they had those back then. But it didn’t matter. It was mine and I loved it!
I was running my lawn and landscape business at that point and I also owned a half acre of dirt under these three homes, which gave me enough room to park all of our trucks, my trailer, and our equipment. What could be more perfect?
Looking at renters overall, 83% say they want to own and 77% believe homeownership is part of the American Dream. So what’s keeping some out of the housing market? The top three reasons given by renters for not currently owning were:
- The inability to afford it
- Needing the flexibility of renting
- Difficulty in getting financing
When asked what would likely be the main reason for buying in the future, a third of renters cited getting married, starting a family, or retiring as a trigger. Another quarter said an improvement in their financial situation would make the difference.
Deal flow for our Rent to Own program may have slowed down but this article shows there are still families out there with the dream of homeownership and they need help getting there.
Source: “NAR HOME Survey: Desire to Buy Strong despite Affordability, Economic Concerns,” Realtor.org (Dec. 17, 2015)