There are HUGE numbers of people, especially living in large, expensive cities, who will never own a home. In Manhattan, for example, with prices for 2 bedroom apartments easily going as high as 1 million dollars or more, there are many successful people who may never own a home, They still enjoy all the benefits of having a family under their (rented) roof!
The recent downturn of the economy may cause many people to stop and take note of just how they spend their money, and whether home ownership works for them.
I believe purchasing real estate is still a great opportunity for many people for the long term. if there is anything we have learned from the last couple of years is living within your means. prices of homes are down and great rates are still available, but it is up to the individual to determine if buying a home now or in the future is for them and their dreams. Historically, the market has it is ups and down but long term it shows a steady rise.
If having the opportunity to live, as well as we do, isn't everyone's dream, then I'd like to hear what might be.
It is unfortunate that many people who have owned their own homes have either taken all the equity out to finance a lifestyle that was beyond their means or just happened to buy just before the market crashed.
The lesson to be learned is that we all need be more aware of our financial responsibilities and make smart choices where investment in real estate is concerned.
Well, of course not; nobody goes to bed hoping to have their balance sheet printed in red ink!
They call tough times tough for a reason, but there's a difference between despairing in the short term and planning for a lifetime of economic misery.
Owing 500K on a house that is now worth 300k and becoming a slave to your mortgage payment for 10+ years before the value catches up to the balance owed..... Is the the American Dream?
Doesn't seem like a dream to me when consumers can rent the same house for half the price and not have to worry about taxes and maintenance etc.... This is the problem our country is facing. Every single one of us has a threshold of being under water before they walk away from a home. Our leaders must stop pointing fingers at who is to blame for the recession and start making positive steps to fix the problem or we are in for much more trouble ahead......
The American Dream? - hmmmm - I say it is shifting to being debt free and creating a stable quality of life for your family. Owning a home I don't believe is not a priority so much anymore. Too bad this has come about and our country best find a way to correct this.... otherwise keep your seat belts strapped on as we have a long way to go before we even hit bottom.....
I think that people want to own their own home. Renting provides flexibility, and some people are always outliers of a sort, but most people like to have their own things.
I do think we in the Real Estate Profession have kind of coasted on this idea that home ownership is part of some romantic notion of what being an American is all about . . . This may be the first generation since Europeans arrived on the continent where people are sitting on the sidelines because they think prices may be better in the next year or two . . .
Having a place to call "home", raise your children, hold family events, and build memories is definitely what I call the american dream even if it's not growing in value or currently helping me growing with my retirement portfolio.
Thanks for the question!