According to the National Association of Realtors’ 2015 National Housing Pulse Survey, the top three reasons Americans gave for wanting to buy a home were for a stable environment, building equity, and the freedom to choose their neighborhood.
Confidence in homeownership
- 85% believe buying a home is a good financial decision
- 68% believe that now is a good time to buy a home
- 48% reported increased housing market activity in the area they live, and 32% reported the pace has remained about the same
- Only 15% of homeowners said that foreclosures were a big problem in their area
Obstacles on the path to homeownership
Financial security remains one of the most significant burden for millennials who are looking to become first-time homeowners.
- In the NAR report, 78% said student loans and other forms of college debt were the main obstacles to having an affordable home purchase
- 76% had full-time jobs but an income that was insufficient to purchase a home
- 74% said they did not have enough savings to cover closing costs and a down payment
Job growth creates new homeowners
The Census Bureau also reported last week that as of January 2016, 63.8% of Americans own their own home, which shows a slight increase over the previous three months. Reports also showed that the increased U.S. employment rate has been causing more and more renters to become homeowners, with a jump of nearly 15% in sales of existing homes, a third of which were from first-time buyers.