Celebrating Homeownership in America

Celebrating homeownership in America by marclebowitz with credit to the Kansas City Star newspaper Homeownership has a rich history in America, and one worth remembering, as we celebrate National Homeownership Month in June. T.S. Elliot once wrote: “Home is where one starts from.” Realtors are in the business of giving people a place to start from — no matter where they come from and no matter what their background. Helping people realize the American Dream of homeownership makes a positive difference in the personal lives of buyers, as well as for the country as a whole. Throughout history, homeownership has played a major role in the growth of our nation’s economy. America’s homeownership rate hovered around 46 percent between 1900 and 1920, before declining to a low of 44 percent by 1940. After World War II, the homeownership rate rose dramatically — to 55 percent by 1950 — as the postwar economic boom contributed to American prosperity. Purchases of homes were central to building that prosperity, and by 1960, homeownership had grown to 60 percent, thanks to favorable tax treatment and attractive financing related to homeownership. Today, America’s national homeownership rate stands at 65 percent, with Idaho showing one of the highest in the nations at 71.0%, according to the U.S. Census Bureau. Homeownership offers both immediate benefits and long-term value. Many homeowners will tell you that the most valuable aspect of owning a home is simply the life that happens within it, from birthday parties and backyard barbecues to family movie nights and good night hugs. Not only does homeownership create a solid foundation on which to build lifelong memories, it’s also how many American families begin to accumulate wealth. According to data from the Federal Reserve Board, a homeowner’s net worth is 45 times that of a renter’s. Local housing markets may experience temporary price declines as well as rapid price increases in the short term, but historically, home values rise over the long term. When purchased for the long term, housing is one of the safest investments consumers can make. In addition to the savings accumulated through a buildup of equity and tax advantages, a home provides shelter – a benefit that a paper investment cannot provide. Not only does homeownership offer financial benefits for those who own homes, housing is also a key driver in our national economy, accounting for more than 15 percent of the U.S. Gross Domestic Product and generating more than 2.5 million private-sector jobs in an average year. While the nation celebrates Homeownership Month in June, locally there is also reason to celebrate the housing market. According to the May 2012 real estate market report released by the Ada County Association of Realtors (ACAR), the Treasure Valley shows continued improvement, including double-digit growth sales and median home value. Among the highlights of the report is the existing home sales category, which saw a 9 percent increase YTD over the same period in 2011. Median sales prices for new and existing homes in May 2012 also showed positive growth with a 25 percent increase over May 2011. According to ACAR’s data, pending sales of new and existing homes increased 5 percent in May 2012 vs. May 2011, indicating the continuation of the positive trend that has been seen in our market in recent months. As we celebrate our nations independence this week; let’s remember the role of homeownership in creating the land that we love.