What is your “American Dream?” For those weighing renting vs. buying, here are a few things to consider about where you want to live.
These days, the “American Dream” is no longer a universal idea; it means different things to different people. In previous decades, the American Dream meant doing better than your parents, which can include buying a home. But today, owning property isn't necessarily everyone's immediate goal.
During the Great Recession, between 2007 and 2014, 7.3 million consumers lost their homes, according to RealtyTrac. With so many families affected by this loss, it is no surprise that in recent years the home ownership rate has fallen from 69 percent in the early 2000s to 63.7 percent at the beginning of 2015, according to the Washington Post. As home ownership has declined, the 2010s are on track to see the fastest growth in renters in history.
In the Ohio Credit Union League’s 2017 Consumer Survey, 25 percent of all respondents do not own their home, and only 8 percent of all respondents are planning on buying a house in the next year. A CityLab article recently reported that renting is increasing nationally across an array of demographics, including age and income bracket. This indicates people are renting because they choose to, not because it’s their only option.
Some consumers want more flexibility and don’t want to be locked into a mortgage when they might want to leave in a few months or years. Some don’t want the responsibility of maintenance and shouldering costs of homeownership, and would rather rely on landlords to handle. To others, choosing a location, even if they can’t afford to buy a home in the desired area, is the deciding factor, and they are willing to forego ownership to live exactly where they want.
As for how Ohio consumers make their housing decisions, 67 percent of survey respondents said location plays the biggest role, followed by 23 percent who consider monthly rent or mortgage payment to be the most significant factor. The size and layout were the most important consideration for 10 percent of respondents.
So, will you put off those big life purchases or remain a mainstay of the American Dream with homeownership? For those weighing renting vs. buying, here are a few things to consider about where you want to live.
Take your time: Avoid waiting until the last minute to decide where you’ll be living next. Knowing what’s available in your market will help you choose well and save the trouble of moving again shortly.
Call 419-529-5603 to make an appointment to discuss your options with one of our loan officers.« Back to General News Releases