In 2023, Homeownership is more important to the individual than ever before in America. We live in a world with pressures to rent everything and love it. Think about it! We can rent a scooter to get around, we can use an app to get a car ride, we can rent a first-time apartment and rent your forever home.
Build to rent is a concept taking place across the country. As you drive down highway 36 to Denver you see so many complexes that look like they would be condos. But they are apartment buildings. Builders and investment groups have discovered it is better for them to build and rent rather than build and sell. That movement is now making its way into single family homes. In many cases right now, by the time the builder is finished with the home, the cost of the home is more than the contracted price. Supply chain issues, cost of labor have increased so much while they are building the house, it makes it difficult to sell at a profit. So why not keep it and rent it. In some communities, investment groups own a high percentage of what would be first time buyer homes, and rent them, rather than in the for-sale market place.
Studies by the National Association of REALTORS® have shown for years that the net worth of home owners has always surpassed that of renters. All that being said, it is more important to own your own home than ever before.
National Homeownership Week had its start in 1995 under President Bill Clinton with the purposed to increase homeownership across America. In 2002, President George W. Bush expanded the program to an entire month.
Historically, June is one of the biggest months for real estate activity. So much so, that the National Association of REALTORS® has celebrated June as Home Ownership month for many years. This year, with home inventory shortages at the lowest level in many decades, becoming a Homeowner has become more challenging. A few more homes are coming on the market with COVID-19 fears easing, but the outlook is the low supply to continue. In April, 2020, the Census Bureau reported the Home Ownership rate in the United States at 65.8% Since the year 2000, the Home Ownership rate has been within a few per cent of that every year. The National of Association of REATLORS® works hard to keep Home Ownership at a high level.
Home Ownership Matters, has been a constant theme of the National Association of REALTORS®, but especially during Home Ownership Month! The National Association of REALTORS® reports that “A number of research studies have shown that home ownership provides social and societal benefits. Not only is home ownership one of the best ways to build long-term wealth, providing resources for a more comfortable retirement, but it also fosters an immeasurable sense of community and stability vital to growing families.”
“NAR’s “Social Benefits of Homeownership and Stable Housing” report reveals that home owners are happier and healthier. They tend to vote more, volunteer more and contribute more to their neighborhoods. Home Owners do not move as frequently as renters, which encourages more neighborhood stability, and children of home owners are more likely to participate in organized activities and spend less time in front of the television.”
Why Homeownership Matters
• Equity build up
Over time, through good and bad economic times, the value of a home in most markets across the country has increased. In the United States, we are blessed with financing, enabling people to buy a home with relatively small down payments and a 30-year amortizing loan. Amortizing means some of the loan goes away each month. When increasing values are combined with a loan balance going down each month, you have equity buildup. This equity buildup has turned out to be a large portion of many Americans’ wealth and financial stability.
• Tax Incentives
The interest paid on a mortgage creates a tax deduction, with limits, on a US taxpayer’s return. Property taxes paid, with limitations, are also deductible. These two tax deductions help lower the expense of purchasing a home.
• Neighborhood Pride
Home owner’s take pride in their neighborhood. They get more involved in the community when they have an ownership stake. Home Owners are the bedrock of any successful community.
National Association of REALTORS® Home Ownership Matters
The National Association of REALTORS and its members are dedicated to helping more Americans become Home Owners. Millions of people have used the resources available to learn about buying a home and staying informed about Home Ownership issues. You can learn about the resources at https://homeownershipmatters.realtor/about/
As a homeowner you have the power to have a say in policies that are created to protect homeownership. You can stay informed about ways to protect homeownership and your community by clicking on the “Stay Informed” link on the website above.
Contact your REALTOR® for expert help in purchasing a home!
By Duane Duggan. Duane graduated with a business degree and a major in real estate from the University of Colorado in 1978. He has been a Realtor® in Boulder since that time. He joined RE/MAX of Boulder in 1982 and has facilitated over 2,500 transactions over his career, the vast majority from repeat and referred clients. He has been awarded two of the highest honors bestowed by
RE/MAX International: The Lifetime Achievement Award and the Circle of Legends Award. Living the life of a Realtor and being immersed in real estate led to the inception of his book, Realtor for Life. For questions, e-mail Duane at duaneduggan@boulderco.com, call 303.441.5611 or visit BoulderPropertyNetwork.com.