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Homeownership is Easier than You Think

Owning a home is often perceived to be more difficult than it really is. Most of those who have made the transition from renting to owning say that buying a home was more worthwhile and less difficult than they had at first thought.

A National Association of Realtors^® survey of homebuyers found that a desire to stop paying rent is the primary factor behind most first-time home purchases. First-time buyers also ranked the desire for tax incentives and a need for more living space as important reasons to buy.

NAR research also shows that homeowners and renters both view homeownership as a measure of financial security. Survey respondents said they would sacrifice luxuries such as home entertainment systems, cars and vacations to purchase a home.

The national homeownership rate is at a new record.

Statistics from the U.S. Census Bureau suggest that homeownership is, in fact, affordable for many. The national homeownership rate reached an all-time high of 68.1 percent of U.S. households in the third quarter of 2001, and eased insignificantly to 68.0 in the fourth quarter.

Barriers still exist that make homeownership difficult for many who want to want a home of their own.

Some renters are held back from homeownership by financial constraints, but others don't buy simply because they think they can't. The major reasons renters cite for believing they cannot buy a home of their own are that they can't qualify for a mortgage and/or can't save for a downpayment. However, the survey also found that less time was needed to accumulate a downpayment than renters anticipated.

Among the social benefits that homeownership provides are community involvement, volunteerism, knowledge of local government actions and an overall reason to care.

For homeowners, the value of their home — the largest investment most of them will make in their lifetimes — creates an incentive to stay abreast of local government actions. Owning a home gives people greater reason to care. And that makes a huge difference for the entire community.

Article courtesy of the Greater Erie Board of Realtors