Scary headlines about the home ownership level falling. But the truth is that no matter what, someone owns that house…
But there is a silver lining to this gray cloud…
I am sure you have heard the recent news from the Census Bureau has fallen to the lowest level in over a decade. While the Census Bureau chart below only goes back to 1995, the fact is data from the Census Bureau indicates that home ownership levels have been in the 60% range for much of the past 50 years. In the 90′s the home ownership level starting climbing until it peaked at 69% in 2004. Check out the chart from the Census Bureau showing the home ownership rate:
I could argue until I am blue in the face about the social benefits of home ownership. But was 69% too high? Or were the methods used to encourage a 69% home ownership level unhealthy? Because home ownership has been proven to be good for both the economy and society in America.
Consider the highlights from a recent study from NAR® entitled Social Benefits of Homeownership and Stable Housing:
The housing sector directly accounted for approximately 15% of total economic activity in 2011
Now some of the other claims in the study might sound far fetched to you but NAR® did their homework and attributed to the studies that back up all these claims. However we must always remember that owning a home is NOT always the right decision for everyone.
However, shelter is one of the basic human needs. So let me clue you in on a little secret…
The Home Ownership Rate is 100%
It does not matter if the home is owned by the person living in it or by someone else, the fact is that someone, somewhere owns the home. Real estate can be a great wealth builder when done correctly.
Real estate is NOT a get rich quick scheme!
Just a few minutes ago, we had a client come into the office to sign the offer on yet another investment property. Think about that for a minute. I said “yet another investment property”. Because in the past year, this investor has bought several homes. Turned them into rentals and he is making good money.
This gentleman is getting a much better return on his investment in real estate than the interest the banks are paying today.
The choice is yours.
Get a pitiful return from the banks or buy rental property.
Or gamble on Wall Street…