Keep up with essential planning news and commentary, delivered to your inbox every Monday and Thursday.
As Homeownership Slips, So Do Expectations
Kelsey Ramirez reports on data from Trulia showing diminished expectations from the American public when it comes to owning a home. This tracks with a 50-year low in national homeownership in mid-2016, a metric that has been declining since around 2003.
While most people still count homeownership as part of the "American Dream," the numbers are slipping. "Trulia’s end of the year survey shows the share of Americans who say homeownership is part of the American dream dropped for the first time in five years from 75% last year to 72%."
Among young adults, the drop-off is steeper. "This drop was even more extreme among Millennials. While in 2015 80% of Millennials said buying a home was part of the American dream, the survey at the end of 2016 showed that number dropped to 72%, now even with everyone else."
According to Trulia Chief Economist Ralph McLaughlin, "If the for-sale housing market is to continue building steam in the years ahead, [Millennials] will need to transition into homeownership in order to support the resale of homes by their older counterparts." In the short run, this may not be happening. But over time, McLaughlin believes the transition will succeed.