The Majority of Americans Still View Homeownership as the American Dream
Buying a home is a powerful decision, and it remains a key part of the American Dream. In fact, the 2022 Consumer Insights Report from Mynd found the majority of people polled still view homeownership as a key life achievement.
Homeownership has been generally viewed as a central component of the American dream, as home ownership yields several financial advantages to homeowners, including access to credit building equity and reducing housing costs. According to data from the U.S. Census, homeownership has been well above 60% ever since the 1960s.
Despite the vast majority of Americans trying to obtain home ownership, they endure numerous financial obstacles, such as challenges creating an adequate down payment, crippling levels of student loan debt, and issues in accessing credit. In addition to these financial hurdles, high real estate prices in recent times impose further limitations.
Let’s explore just a few of the reasons why so many Americans continue to value homeownership.
The Financial Benefits of Owning a Home
One possible reason real estate ownership is viewed so highly is because owning a home is a significant wealth-building tool, and it provides meaningful financial stability over renting by locking in your monthly housing payments for the length of your home loan. An article from Forbes explains:
Over time, owning a home not only helps boost your own net worth, but it also sets future generations up for success as you pass that wealth down. That may be why the Mynd report also says:
“Most Americans (78%) still associate homeownership with the ‘American dream.’ And nearly two-thirds of Americans (65%) see homeownership as a means of building intergenerational wealth.”
The Non-Financial Benefits of Homeownership
While the financial benefits of real estate ownership are important, becoming a homeowner impacts you on a social and emotional level, too. As Mark Fleming, Chief Economist for First American, says:
Your home provides feelings of achievement, responsibility, and more. 3by30 highlights the top 10 benefits homeowners enjoy. A few non-financial advantages include:
- Providing you with more freedom and control over your living space
- Giving you a greater sense of pride
- Helps with community engagement
Should You Buy, Sell, or Both?
Homeownership in Kalamazoo
More and more people are aiming to be a homeowner aims to achieve their dream of homeownership in Kalamazoo. And the reason behind this is the homeownership incentives that they can get to experience in Kalamazoo.
Here are some of the homeownership incentives in Kalamazoo, Michigan.
- Freddie Mac Home Possible Mortgage Freddie Mac offers the Home Possible Mortgage Program to help home buyers with limited resources afford mortgages. The Home Possible program enables home buyers to buy a home with a down payment as low as 3.0% of the property purchase price and no minimum borrower financial contribution. The Home Possible program is similar to Fannie Mae’s Home Ready Mortgage Program.
- NHF Down Payment Assistance
One of the biggest challenges for homebuyers is coming up with the funds to cover the down payment requirements and/or closing costs associated with a mortgage loan. To bridge that gap, NHF provides down payment and/or closing cost assistance (DPA), up to 5% of the mortgage loan amount.
- Crowdfund with HomeFundIt
HomeFundIt is the only crowdfunding program in the nation approved by Fannie Mae and Freddie Mac for use with conventional mortgage loans
Landis helps renters buy their first home. People can pick out the home of their dreams, rent it for a year (while they build credit and save for a downpayment), then purchase it any time in the first year. Additionally, they offer people tools and incentives to enhance their credit score and build up their down payment.
Where to Go From Here
If your definition of the American Dream involves greater freedom and prosperity, then homeownership could play a major role in helping you achieve that dream. While it may feel challenging to buy a home today as mortgage rates and home prices rise, if the time is right for you, know that there are incredible benefits waiting for you at the end of your journey. You’ll have a place you can grow your wealth, call your own, and feel most comfortable.
Like the National Association of Realtors (NAR) says: