Consumers’ View on Homeownership Remains Optimistic

Adults have maintained a positive view of homeownership five years after the biggest housing crisis hit the nation since the Great Depression, according to a survey from NeighborWorks America.  

Based out of 1,000 U.S. adults across the country, 88% said owning a home is an important element of their “American dream,” while 55% said they would not feel any less successful if they were not able to purchase a property.

Another two-thirds of adults say their opinion of homeownership has not changed over the past five years even though returning to a normal housing market has been slow. Renters, 37%, are more likely than homeowners, 23%, to report that their attitude is different, the NeighborWorks poll revealed.

“Although the housing market took one of the largest hits ever—with home prices falling nationally and foreclosures rising to more than one million homes annually—homeownership remains a goal many want to achieve,” says Eileen Fitzgerald, CEO of NeighborWorks America. “But it’s important to also note that the poll also underscores that we need to have quality and affordable rental homes available for those people who simply prefer to rent.”

While the overall view of homeownership has not changed by the housing crisis, the poll found dramatic differences between current homeowners and renters.

Renters have not altered their minds of purchasing a home despite near-record low mortgage rates and a general decline in home prices, as only 42% are considering it while 55% are not. Additionally, 63% of renters are more likely to rent their next housing unit, while 25% of homeowners would rent a property.

Both renters and homeowners respectively agree that the home buying process is complicated, at 80% and 73%. There are a variety of obstacles to homeownership, the poll says, driven largely by personal economics including lack of job security and a lack of downpayment.

Most adults believe they are knowledgeable about the different mortgage types, but one in four say there is no familiarity with the mortgage products.  

The poll confirmed that there is tension among consumers when it comes to being prepared to purchase a home. About half of Americans said they are more prepared today than five years ago to acquire a home, but another 40% said they are less ready.

“These results tell us that most consumers believe that they know when the time is right for them to buy a home, and feel strongly that homeownership is important, but that their personal situation may have been affected in the past five years and is holding them back from pursuing homeownership,” Fitzgerald says.