Tuesday, May 1, 2012

Housing trend: More people renting homes today than a decade ago

There is one underlying fact about housing data, and that is the reporting is done by those with a specific agenda.  When two analysts read the same data, and come up with entirely different conclusions, then either no prediction is possible, or one of those two analysts must work for the government.

With this being said, the truth is, housing prices and opportunities for Americans is not improving, but in fact, is decreasing.  A new chart shows that more people are renting rather than owning homes in 2012 than they did just a decade ago, and before the bursting of the housing bubble.



Less than two thirds of Americans say they own their own homes - the lowest rate of home ownership in more than a decade.

A new Gallup poll shows just 62 per cent of Americans are homeowners, down 11 percentage points from the high of 73 per cent in 2007, just before the housing market crashed spectacularly.

A record number of Americans, 43 per cent, also say their homes are now worth less than what they paid for them.

The new data, based on a survey of 1,000 people, shows that housing market continues to plummet, despite modest economic recovery and improvements in the unemployment rate.

The home ownership rate reported by Gallup dropped six percentage points from this time last year. The numbers were the lowest in the history of the survey, which Gallup began taking in 2001. - Daily Mail


Unfortunately, the Federal Reserve and the Treasury place too much stock in home ownership, consumer spending, and the stock markets rather than focus on actual production, job growth, and exports.  The economy will continue to decline because the American people have not recovered from the failures of the banks in 2008, and housing will be a dream left in the past unless fundamental changes are made which clear out the debts of this recession.  Without this deleveraging of debts, the system cannot provide Americans the chance to own a home for years to come.

3 comments:

What's wrong with renting??

People should save their money until they have 20% or more. Cash only is ideal! Learn from the past people!

Of course they look at me like I'm crazy when I suggest they cut a $100+ a month cable bill. Or drive a car that is 3 years old. Or only fill up their tank from the cheapest place according to GasBuddy. Or get $25/month budget car insurance from Insurance Panda. Or cook their own food instead of spending a hundred a week on restaurant food (or far more if they like the bar).

You live exactly like people did in the 1970's, and suddenly there's tons of money. Usually moderate earners can save $500 a month on these types of luxuries. May not seem like much, but it's usually the difference between being in financial trouble, and at least not losing ground.

My point is that it's so odd that people seem to forget all the little things we have, buy, use - that they didn't in the "better" times. That stuff isn't free.

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