The nation’s homeownership rate is still pretty impressive. According to the latest data from the Census Bureau, two thirds of U.S. households – 66.5 percent – own their own homes. While that is the lowest national homeownership rate since 1998, it’s important to note that the nation is still recovering from The Great Recession, and housing markets are slowly starting to return to health. The Census Bureau’s report provides more detailed breakdowns on homeownership rates. For instance, during 2010, homeownership among those householders who are Asian, Native Hawaiian, Pacific Islander, American Indian or Alaska Native actually increased slightly. The report also breaks out homeownership rates by age cohort. Not surprisingly, older householders have a higher rate of homeownership:
Under 35 – 39.2%
Aged 35 to 44 – 63.9%
Aged 45 to 54 – 72.7%
Aged 55 to 64 – 79%
Aged 65+ – 80.5%
The majority of American households know the value and importance of owning their own home. So let’s look at why homeownership matters to people, to communities, and to America.
Contributions to the economy.
Housing is a key driver of the national economy, accounting for more than 15 percent of the U.S. Gross Domestic Product. Every home purchase pumps $60,000 into the economy for furniture, home improvements, and related items. Each home sale touches 80 different occupations. Home sales in this country generate more than 2.5 million private-sector jobs in an average year. For every two homes sold, a job is created. In addition, homeowners contribute the bulk of federal income taxes – 80-90 percent – which support federal programs that benefit all Americans.
Homeownership continues to be seen as a good long-term investment.
Apartment rent is expected to rise throughout 2011 and into 2012. Annual rent increases make homeownership a good investment for most households. Most homeowners enjoy stable housing costs—a fixed rate mortgage payment might not change for 15 or 30 years while rent typically increases 3 percent a year. Owning a home is a one of the best ways to build long-term wealth. Historically, a homeowner’s net worth has ranged from 31 to 46 times that of a renter.
Social and civic engagement.
A number of research studies have shown that homeowners are more involved in their neighborhoods, their children’s schools, and the political process than are renters. Homeowners have a higher voter participation rate than do non-homeowners. Mobility rates for homeowners (how often they move) are lower than those for renters, thus providing more neighborhood stability. Children of homeowners do better in school, and stay in school longer.
Article courtesy of the National Association of Realtors
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