Some of the experts on the news today continually say America in the future will be a nation of renters with only 32% homeownership. WHAT? Currently 68% of Americans are homeowners.
At first glance people may want to throw up their hands and say American homeownership is a thing of the past. As we work our way through the mortgage mess, I believe people are going to get back to the roots of real estate. Buying a home because of the value it brings to your life not your wallet.
Home ownership improves your life and allows you to create your own domain, while renters must comply with the rules of the landlord’s domain. We need to remember what history has taught us. Before the real estate price boom home owners were improving their homes. Their motivation was not for monetary gain, but because of what extra cabinet space would bring to the house hold or because they wanted to modernize simply because they had changed and wanted their home to reflect that change.
Certainly individuals wanted to customize their homes because of their interests. Such as If you like to work with your hands as gardener and want to landscape or grow your own food, or if you are a woodworker or shade tree mechanic and want your own shop. “Martha Stewart” types want to create a warm place for friends and family to gather, or a guy may want a man cave to play pool or have a bar. Many of these decisions were not made for monetary gain, but they did have an impact on their home value, simply because others share the same interests.
Even if one of these hobbyist homeowners are upside down in their home value his life is enhanced and the price of his home would not change that. Home owner demand will rise because it is still part of the American Dream and people want to live in America the land of the free and home of the brave. In the future we will get back to our roots and not be a nation of renters.
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