Economists have declared the end of the housing crisis, some as long as a year ago. Real estate agents in some markets say sales are surging, with many houses attracting multiple offers. Even some builders are going full bore again.
But the American public still doesn't buy it, according to a new national survey commissioned by the John D. and Catherine T. MacArthur Foundation.
The telephone interviews of 1,433 adults over a two-week period in late February/early March found that while the financial markets and sales data may suggest the prolonged housing crisis is over, the American public is not ready to agree. The survey as well as a series of ten focus groups were conducted by Hart Research Associates.
Signs of life in the housing market? Maybe, but only for a relatively small 20% of the respondents. Most of the rest (77%) believe they're "still in the middle" of the crisis, with 19% of those still thinking the "worst is yet to come."
What's more, said researcher Rebecca Naser, is that's "the prevailing view" across the country, across all regions and all parts of the public.
"There is remarkable uniformity in the belief that it is premature to declare the end of the housing crisis," the report said.
At the same time, while ownership remains a goal of nearly one in four, the survey also found that the appeal of ownership isn't what it used to be.
For one thing, the crisis has touched nearly half the public at some point in their lives. And 20% still characterize their situations as only somewhat secure at best. For another, three out of five adults—not just renters—now believe "renters can be just as successful as owners in achieving the American dream."
That is, after decades of equating ownership with motherhood and apple pie, the housing crisis has changed how people feel about their housing choices. Indeed, a near majority (45%) would consider renting some time in the future. This compares to 20 to 30 years ago, said Naser, when half that percentage would consider renting.
"This is personal for people," the researcher said. "The collateral impact of the last seven to eight years is profound. There has been a shift in lifestyle, culture and the way people want to live their lives. And I think we're just seeing how fast and how far attitudes have changed."
But renting or buying, the study found, the public understands the vital role that stable housing markets plays for families and communities.
For example, 77% said a challenging housing situation would have a negative impact on the relationship between parents, 73% said it would challenge the mental health and well-being of family members, and 66% said it would impact the children's ability to do well in school.
Likewise, access to decent housing, 73% said affordable housing would have a positive impact on neighborhood safety, 71% said it would have a positive effect on the community's economic well-being and the kids ability to perform in school, and 70% said it would play well for both individual and family security.
Consequently, after being provided with information about U.S. housing policy and demographic and lifestyle changes, more than three in five self-identified Democrats, Republicans and Independents believe the "focus on our housing policy should be fairly split between rental housing and housing for people to own."
"In contrast to the partisanship political discuss in Washington today," the study said, "the public has a balanced and realistic view about national housing policy."
Naser said, "People are thinking differently. There's more openness to renting. It's a more appealing option."
"What struck me," said Peter Hart, chairman emeritus of the research firm, "is the change from stigma to status."
"Renting used to have a definite stigma attached to it. But attitudes have dramatically changed over the last generation. Renting is now acceptable, renters are no longer see as second-class citizens, and the public is much more willing to look at policy changes."
Lew Sichelman is an independent journalist who has been covering the housing and mortgage markets for more than 40 years. He can be reached at lsichelman@aol.com.
