Confidence in Value of Homeownership Persists Through Bust
LA Times: Despite the decline in
home prices, 81 percent of U.S. adults believe buying a home is the best
long-term investment a person can make, according to a national survey by the
Pew Research Center.
MAKING SENSE OF THE
STORY
- Homeownership topped the
list of long-term financial goals for Americans, according to the
study. Respondents rated homeownership, as well as living
comfortably in retirement, as more important than sending children to
college or leaving offspring an inheritance.
- “Owning a home is really a
part of the American dream, and that is just part of the American psyche
and something that people aspire to,” according to one of the study’s
authors.
- Although the vast majority
of adults surveyed are in favor of owning a home, the public’s faith in
real estate has somewhat declined compared with the last time a comparable
survey asked people about the wisdom of investing in real estate. In
the Pew Research Center survey, 37 percent of respondents said they
“strongly agree” that homeownership is the best investment a person can make,
while 44 percent said they “somewhat agree.” The same question was
asked by a CBS News/New York Times survey in 1981, and at that time, 49
percent “strongly agreed,” and 35 percent “somewhat agreed.”
- While home prices have
entered a renewed decline after showing some improvements last year, many
economists believe that the worst of the housing crisis is probably over,
which could help explain the resiliency in Americans’ optimism.
- Homeowners in the survey were more positive
about the financial wisdom of owning a home than were renters. Among
renters, the desire for homeownership remains strong. According to
the survey’s findings, 24 percent of renters surveyed said they rent out
of choice and 81 percent said they would like to buy.
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