There is pervasive talk these days that the American dream of homeownership is now the “myth” of homeownership. Lightning never strikes twice in the same place – that’s a myth. Dig a hole deep enough and you reach China – another myth. But the long-term value of homeownership … not a myth.
Instead of listening to trendy naysayers, we perhaps should pay attention to what Americans think. They are the actual consumers, with more than two-thirds of them owning a home in our country.
A robust majority continue to believe in the value of homeownership and place it high on their list of priorities.
Several recent surveys measuring attitudes about homeownership produced consistent results that shouldn’t surprise anyone. In a recent Pew Research Center survey of more than 2,000 adults, 80 percent said that buying a home is the best long-term investment.
The Allstate-National Journal poll conducted in March indicated that a solid majority (70 percent) would advise a family member to buy a home as a long-term investment.
Even in today’s challenging economy, 92 percent of owners and 72 percent of renters believe that over a period of several years it makes more sense to own a home according to a January survey by the National Association of Realtors.
Americans’ lasting belief in homeownership is evident when Pew Research survey respondents are asked about long-term financial goals. Nothing beats homeownership, which ranks slightly ahead of both saving for retirement and saving for the kids’ college.
The average Washington taxpayer saved $3,565 in taxes as a result of the deduction on their mortgage interest in 2008, a significant savings to a middle-income family. That’s why more than half of homeowners want to keep the federal mortgage interest deduction for homeowners in place, according to a May survey by HousingPredictor.com.
Homes, in the long run, appreciate in value. Despite the dramatic fall in home prices over the past several years, a home purchased in Pierce County before 2005 has retained at least some nominal value increase, and a home purchased in 2000 has kept a value above inflation.
And, as The News Tribune reported in its article, “Tacoma housing market cheered on CNN Money” (Feb. 8) Fiserv data show that home prices in our county will appreciate by 11.8 percent for the “biggest housing price gains in 2012.”
Harder to measure are the social and emotional benefits for a family, but they are there. Homes allow families to put down roots, build family memories and create lifelong friends. The best reason for buying a home given in one survey is “having a place to raise a family.”
In its 28-year history, the Washington State Housing Finance Commission has enabled Washington residents in every county — more than 43,000 Washingtonians statewide — to achieve homeownership for the first time by offering below-market-rate mortgages and assistance with down payments.
Recently, despite the barrage of bad news and supposed myth-busting about homeownership, the WSHFC has facilitated, on average, nearly 30 loans a week and demand has not gone down during the recession.
Owning a home provides the opportunity for personal choice and freedoms, certainly an appeal for Americans’ independent spirit. As housing advocates, we have seen it for years; when buyers get their keys and begin sprucing up a place the way they like it—painting, redecorating or renovating—it is a personal investment in their family and their future.
There are approximately 1.65 million owner-occupied homes in Washington state. Harsh foreclosure realities have faced too many Washington homeowners, but more than 97 percent of them have not faced that tragedy and the ideal of owning a home remains indelibly etched in our beliefs and a huge part of our aspirations.
The bloggers, columnists and self-appointed analysts are mistaken when they link the mortgage crisis of the past several years to the country’s support of homeownership.
Americans, who understand the benefits of owning a home, both tangible and intangible, continue to hold tight to their dream. They have told us so.
Phil Harlan is the 2011 president of the Washington Association of Realtors. Kim Herman is the executive director of the Washington State Housing Finance Commission
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