Here’s how you can help spread the word about the benefits of owning a home and support advocacy efforts to expand housing access.

Homeownership is a financial windfall for most households, with homeowner wealth soaring 40 times higher than renters. Over the last decade, most owners have earned more than $100,000 in equity, according to research from the National Association of REALTORS®. Homeownership has long been a primary avenue for building generational wealth and is a crucial component to closing the racial wealth gap in America.

As June marks National Homeownership Month, real estate professionals, brokerages, REALTOR® associations and lawmakers are promoting the benefits of homeownership while also spotlighting the work that still needs to be done. To help in this endeavor, NAR has launched a Homeownership Month toolkit. “Homeownership is the centerpiece of the American Dream and the best way to build financial security,” says NAR President Kenny Parcell. “REALTORS® strive to ensure all Americans have the opportunity to achieve homeownership, but prospective buyers face more barriers now than ever before. We continue to work with policymakers and industry partners to bring relief for buyers and put homeownership in reach for more people.”

President Joe Biden issued a proclamation(link is external) saying the month of June is a time to recognize the benefits of owning a home, such as building roots in a community, gaining equity and passing down generational wealth. The Department of Housing and Urban Development has launched a campaign, “Make Home the Goal(link is external),” to commemorate the month. The department will hold a free event this Saturday on the National Mall in Washington, D.C., to provide information to aspiring home buyers about housing counseling, financial education, down payment assistance and FHA mortgages. “I want everyone in this country who desires to own a home of their own to have access to the resources and tools they need,” HUD Secretary Marcia Fudge said in a statement.

Despite recent economic turbulence, Americans still have a strong desire to own a home. Fifty-eight percent of people who have never owned before say they are likely to purchase in the next 12 months, according to a new Chase survey of about 2,000 respondents. Seventy percent still see homeownership as an important step to building wealth, the survey shows.

What You Can Do

Here are some ways real estate pros can commemorate National Homeownership Month.

1. Spread the message. NAR’s toolkit offers graphics you can download and use on social media or as email headers to show your support. Use the free Photofy app(link is external) to personalize your graphics.

2. Advocate for homeownership. You can take part in a number of NAR advocacy efforts to support homeownership, whether it’s about financing, affordable housing or fair housing. For example, in a recent column(link is external) for The American Genius, NAR CEO Bob Goldberg shared how Atlanta REALTORS® Immediate Past President Karen Hatcher advocates for fair and affordable housing opportunities in her community. Last year, she was appointed as cochair of the Homeownership Working Group for HouseATL, which is the first local pilot program of the nationwide “3 by 30(link is external)” initiative to cultivate 3 million new Black homeowners by 2030. NAR serves as a founding member of the initiative, which was launched by the Black Homeownership Collaborative. Real estate professionals also are approaching city or state leaders to advocate for issues like zoning changes, affordable housing development and down payment assistance to enable more people to become homeowners.

3. Spark conversations. NAR’s research team releases studies throughout the year that collects homeownership data and addresses homeownership gaps and where progress can be made. Real estate pros can use the studies to raise conversations about homeownership. Here are just a few NAR has released over the past year:

• Wealth Gains by Income and Racial/Ethinc Group looks at how homeownership can be a catalyst for building wealth for low- and middle-income households and people of color.
• 2022 Obstacles to Home Buying details the most common obstacles in the buying process, broken down by race/ethnicity.
• Congressional District and State Reports provide data on housing in state and congressional districts.
• NAR also offers podcasts with conversations that address homeownership barriers. Listen to an episode of Drive With NAR: The REALTOR® to REALTOR® Series focused on how to harness your role in solving the inventory crisis.

How NAR Is Addressing Homeownership

NAR works closely with federal and state leaders, as well as industry partners, to address some of the main barriers to homeownership, such as housing supply and affordability. The association points to several advocacy successes this year, such as HUD’s February announcement to reduce mortgage insurance premiums and the Federal Housing Finance Agency’s recent decision to rescind a proposed mortgage fee on borrowers with debt-to-income ratios greater than 40% (which was slated to take effect Aug. 1). Both issues were viewed as hurdles to home affordability.

But NAR leaders say more needs to be done. In May, thousands of REALTORS® gathered in Washington, D.C., to share with Capitol Hill policymakers their legislative priorities to improve homeownership access, including:

• Increasing the maximum amount of capital gains a homeowner can exclude on the sale of a principal residence (and annually adjusting it for inflation) as a way to incentivize sellers and boost inventory.
• Attracting private investors to build and rehabilitate homes with tax credits.
• Incentivizing the conversion of unused commercial buildings to residential and mixed-use properties.
• Creating incentives for housing providers to participate in HUD’s Housing Choice Voucher program, as well as reauthorizing and increasing funding for HUD’s fair housing enforcement programs.

©National Association of REALTORS®
Reprinted with permission

Increasing energy costs are spurring more homeowners to go solar, but an abundance of choices in the field can make the decision daunting. Help homeowners weigh the options with these five considerations.

Key Takeaways:

• More efficient and lighter solar modules help to lower energy bills.
• Experienced installers and module manufacturers recommend how many panels a roof needs based on how much power residents use and other factors.
• Federal tax credits are still available.          

Installing solar panels or modules to convert sunlight into electricity and conserve energy is not a new concept. Back in 1954, researchers at Bell Laboratories(link is external) demonstrated the first practical silicon solar cell.

But solar power has been heating up over the last 10 years, with a 50% average annual growth rate in the U.S., according to the Solar Energy Industries Association(link is external). This is due, in part, to the Solar Investment Tax Credit put in place in 2006 that now reimburses 26% of the cost for solar systems on residential and commercial properties. Other factors have also played a role, including low interest rates. Homeowners can bundle the cost of panels into their mortgage, says Amy Tovel, marketing manager of Ichijo USA(link is external), a company that installs modules on many Pacific Northwest homes.

Many homeowners are becoming more energy conscious, says architect Nathan Kipnis, FAIA, LEED AP, whose Kipnis Architecture + Planning(link is external) offices are in Chicago and Boulder, Colo. It’s rare for one of his company’s major projects not to include solar panels or wiring for installation later, largely because of increasing efficiency, he says.

Still another reason is that more areas are enacting mandates. California regulators recently voted to require builders to include solar power and battery storage(link is external) in new commercial and high-rise residential projects, as of Jan. 1, 2023. The state of Washington now requires new homes to have energy credits,(link is external) as of Feb. 1, 2021, and solar panels represent one option to attain them. Homes greater than 5,000 square feet require additional credit. To meet those criteria, MN Custom Homes(link is external) doubles the amount of solar panels for its larger homes, says vice president Ben Brittingham.

Lastly, the panels have become less of an eyesore due to improved aesthetics, whether on a roof or in a yard stationed on the ground—sometimes preferred due to the absence of trees—says Suvi Sharma, founder and director of Solaria Corp.(link is external), a Fremont, Calif.-based solar manufacturer focused on the residential market.

But as the field grows crowded with manufacturers and installers touting longer-lasting solar systems with greater efficiency and less cost, deciding which one to choose requires research.

“The promises some companies make are wildly flowing,” cautions Madison, Conn.-based architect Duo Dickinson(link is external). Another caveat is the cost fluctuation of panels due to tariffs on imports, now at 18%. Though these are set to expire next February, China remains a top location for manufacturers(link is external).

But home buyers seeking a new home may not have to make choices as more developers and builders incorporate solar during construction.  

That’s the case with Pearl Homes’ new community, Hunters Point(link is external), in Cortez, Fla. Owner Marshall Gobuty wanted to construct the first NetZero LEED certified community in the U.S. “Anybody can build a house but not everybody can reduce the carbon footprint,” Gobuty says, adding, “Our goal is to build homes that generate more power than they consume.”

When completed by early 2022, all 86 homes, averaging 3,300 square feet, will have roof panels, WaterSense plumbing and fixtures, and GE EnergyStar appliances. Though the company is still deciding which panels to use, they are going with installer my-RESI(link is external) out of Millstone Township, N.J., and sonnen’s ecoLinx energy storage system(link is external), which Gobuty believes offers the most efficient, safest battery, and a 25-year warranty. Homeowners will pay a fixed fee to the HOA for a set amount of power and backup.

But homeowners should be aware that having solar power doesn’t eliminate an electric bill since there’s still a fee to be connected to the grid, says James O’Connor, director of marketing for Salt Lake City-based installer, Go Solar Group.

Here’s what home buyers who are working with a builder or architect on a new home—or retrofitting an existing home—should consider when choosing components from various providers to make solar work.  

1. Roof and house orientation. How much surface solar modules cover on a roof or how big the installation is on the ground makes a difference in the amount of energy produced. Generally, they are placed facing south or west to be exposed to the most sunlight, optimizing power, says Dickinson. Pearl Homes’ will cover 88% to 92% of a roof surface. Covering 100% may produce more power than occupants can use.

2. Panels. In recent years, panels have become more efficient, thinner, and better looking, thanks to monocrystalline designs that use a single photovoltaic cell rather than several cells that the older polycrystalline designs relied on. As a result, the updated panels can occupy less roof space because they pack in more power, O’Connor says.    

The number of panels installed is generally based on the amount of electricity occupants use, which is why an installer often asks for 12 months of electric bills, says Mike Koehler(link is external), vice president and solar business developer for Gardner Capital, St. Louis. If the next owner of a solar powered house uses more electricity, they might request a larger array, he says.

What this means for a homeowner who chooses a newer 400W panel, for example, versus older 370W panel, is that they may only need to install 38 panels instead of 41 and save about 33 square feet of roof space, Koehler says. And because the 400W panel is more efficient, it will generate more electricity, he says.

Installers also need to know local ordinances. For example, Evanston, Ill., doesn’t allow panels to stick up past a roof’s ridge line or be visible from the street if the roof is flat, says Kipnis. They also need to know local utility rules since some will buy back excess power, Koehler says. Rocky Mountain Power, which services most Utah customers, gives credit for excess energy, says Scott Cramer, president of Go Solar Group.  

3. Batteries. Extra energy can be stored in batteries. Different solar panel manufacturers prefer different battery companies. For example, Solaria buys batteries from Sonnen, Sharma says.

4. Installers. Installation costs have dropped as more installers have entered the niche and become more experienced, says O’Connor. Besides the modules and batteries, homeowners who go solar need an inverter to hold panels, wiring in place, and a meter. Sharma suggests homeowners ask installers which modules they use, the price of each panel, number needed, what they look like, how much shipping to the site will be, and if permits are needed.

5. Costs and return on investment. A typical panel system might run between $15,000 and $25,000, which includes ancillary equipment and labor, Koehler says. Yearly savings vary greatly depending on the utility and if it offers incentives, he says. The good news is that a typical warranty lasts a long time; Solaria’s is 25 years, Sharma says.

How much money is saved also depends on how a purchase is made. “If someone pays out of pocket, it may take seven to 10 years for a payback, but if someone leases the system, the savings will be less per month, but the homeowner has no upfront investment,” Koehler says. 

One caveat relates to whether a solar system will increase a home’s value. One study from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory(link is external) found that the panels are viewed as upgrades and home buyers have been willing to pay a premium of about $15,000 for an average-sized solar system. Additionally, the homes sell faster than those without solar.

Brittingham of MN Custom Homes thinks that the ethical rather than financial reasons are becoming a bigger buyer incentive. “A return on investment is still longer term since there are still big out-of-pocket expenses,” he says.

Another caveat is that not all homeowners benefit equally from having a solar system. Those who live in a house with a lot of trees that block sunlight will see less benefit, as will those who already use little electricity or have inexpensive electricity.

©National Association of REALTORS®
Reprinted with permission

Many homeowners are still reluctant to work out in gyms as COVID-19 remains a threat. Here’s how they can outfit a space without spending a bundle.

Key Takeaways:

• You don’t need a dedicated, tricked-out space to get fit.
• New exercise apps, a little floor space, and a few pieces of equipment can help get your clients moving.
• Homeowners should keep essentials organized so the room can function for other uses.

In the 1980s and ‘90s, when houses were getting bigger and fancier with all sorts of specialty spaces—theaters with stadium seating, giant aquariums, rathskellers, and sports courts—some homeowners would bring in dozens of pieces of gym equipment, install cushioned flooring, line a wall with mirrors, and add a TV or sound system to create a home workout space that could rival a commercial fitness center.

That’s a costly investment, especially when some folks lose motivation and interest. Worst case scenario: Their treadmills and ellipticals machines become a clothing rack.

Then came the pandemic, and at its peak, six out of 10 members stopped going to their local gym. Two-thirds of those pursued a fitness routine on their own, according to a study by ClubIntel of 2,000 U.S. gyms.

Thanks to technology, there has been a huge uptick in Zoom and livestreamed workout options offered both by gyms that have designed hybrid in-person and online classes, as well as a host of entrepreneurs’ and manufacturers’ new exercise apps.

These make it easy to exercise at home and on the go and have inspired many homeowners to clear a room or space to do their jumping jacks, downward dogs, and bicycle rides—sometimes competing against strangers across the country or around the globe.

In fact, Houzz, the online home site, says since the beginning of the pandemic, it has seen a 156% increase in searches for home gyms.

But in this go-around, fitness experts say having a large, swanky space expensively outfitted with the latest cardio, weight training, and core-enhancing equipment is not essential.

Moreover, those items won’t guarantee added value to a house for resale except to those specifically looking for a finished workout room or an area where they can create one, says Linda Bright(link is external), a premier luxury specialist with Illustrated Properties in Palm Beach Gardens, Fla. If the room’s over-the-top, and buyers have no interest, it could be the first thing dismantled, says real estate salesperson Barb St. Amant(link is external) of Atlanta Fine Homes, Sotheby’s International Realty.

However, having a smaller, appointed space offers benefits for those interested, says Nora Crosthwaite(link is external), a salesperson with RE/MAX Precisions, who also owns the online staging company, Stagerie(link is external). In her Des Moines, Iowa market, Crosthwaite says homeowners like to fix up basements for this purpose in the area’s many ranch-style homes. Homeowners should be sure a basement is dry before investing in any remodel.

In the case of homes without a basement or a separate room, clients can use a multipurpose space where equipment can be organized, Bright says. “It gives potential buyers an idea of how they might use the room in different ways to show its flexibility, which is what many buyers are after, especially now when there is such low inventory,” she says.

All sorts of rooms offer this potential, including an oversized bathroom, sitting area off a bedroom, home office, walk-in closet, garage, accessory dwelling unit (ADU), or outdoor area in good weather, says Melissa Wirt, founder of Connexusliving(link is external), which brings amenities and fitness classes to multifamily communities through content from the company’s base in Murrells Inlet, S.C.. “What’s important,” she says, “is that a homeowner can enter a space or area and focus on the programming they choose rather than specific equipment.” 

What also helps make an indoor room suitable is good ventilation, natural or artificial lighting, a proper floor—rubber matting, luxury vinyl tile (LVT) planks, carpeting, or wood flooring with cushioning underneath, and a mirror to maintain proper form and alignment, depending on the activity, says Wirt. Any of these items should be easy to switch out to make the room function for another purpose. Ceiling height is also important, and why some basements shorter than 8’ won’t work, Crosthwaite says.

In setting up the room or area, homeowners should arrange items to be accessible. “They shouldn’t have to move the coffee table every time they work out,” says Cathy Spencer-Browning, vice president of programming and training at Atlanta-based MOSSA(link is external), which provides group fitness programs and MOSSA on Demand(link is external), including a range of classes via streaming for homeowners.

Minneapolis-based Wellbeats(link is external) offers more than 900-plus classes in a range of exercises for close to 2,500 multifamily buildings and other wellness-minded businesses, says Tim Bowen, senior vice president of sales. “The digital world is meeting the need for knowledge and versatility in working out, not with equipment that replicates a gym but by offering people great instruction and a way to be both movement and mindfulness oriented,” he says. “Consumer behavior has changed. They may not race to a gym then to work, but if working from home they may want a break, even a one-minute breathing exercise.”

Establishing an exercise routine that appeals is critical, says Spencer-Browning. “The best workout to do at home is the one they’ll stick with because they enjoy it,” she says. They should ask: Am I a self-directed exerciser or prefer to be told exactly what to do? If they’re not sure, they should try out a few choices and if they like it, support it with a few accessories that help pursue it such as a mat for yoga, along with music, a TV, or candles, she says. “Otherwise, they won’t continue. This is why there are so many bikes for sale on eBay!” she says.

Wirt also suggests finding content with a trainer whose workouts appeal and offers new challenges to make exercising fun. “We can’t lose sight of the social aspect of feeling connected with people,” she says.

Hudson Valley, N.Y., fitness trainer Regan Szczepanowska, a former professional dancer, says it’s important that the trainer—whether virtual or a person they meet with live—has proper training, which can be checked by looking at their credentials such as from an organization like the American College of Sports Medicine or the National Association of Sports Medicine. “Then, they should make it part of their lifestyle to be diligent,” she says.

By making careful selections, a homeowner can meet all their workout needs, whether cardio, strength training, flexibility, mobility, or mindfulness.

One of the newest amenities builders are including in housing developments to attract buyers is electric vehicle charging stations. Learn more about this feature that’s growing in popularity among your clients.

Key Takeaways:

• Developers are including charging stations in new multifamily buildings to future-proof their investment.
• Even if they’re not installed in a new development, more builders are adding wiring to homes and buildings so charging stations can be added later.
• Options and costs vary so the amenity warrants good research.

As more car manufacturers add electric vehicles to their fleets, those who own or lease them know the value of having a charging station in their single-family house, multifamily condo, or apartment building. 

And their popularity is only expected to grow. A recent report by Bloomberg New Energy Finance(link is external) shows that by 2040, electric vehicles will make up the majority of new car sales worldwide and account for 33% of all light-duty vehicles on the road.

Another factor fueling numbers may be the increase in companies manufacturing charging stations, says Cassie Layton, senior director of marketing at El Segundo, Calif.–based EV Connect(link is external), a firm that develops software for the stations—what she calls the “brains behind the units.”

But exactly how important are charging stations to home buyers as they shop for their next home?

“It’s a plus but not a necessity—yet,” says real estate salesperson Stephanie Mallios, with Compass RE NJ(link is external) in Short Hills, N.J., who works with buyers of single-family homes, townhomes, and condos. Many equate it to a hip amenity like a Nest thermostat, wine refrigerator, or yoga room, she says. “It shows the homeowners are cool, and that future buyers will have one less thing to do,” says Mallios, who built two charging stations into her own home’s garage.

At the same time, it’s wise to share with buyers that the amenity’s appeal may be greater with cohorts of certain ages and certain geographic markets. For example, in San Diego, salesperson Ayush Vats with Willis Allen Real Estate(link is external) says he is seeing more first-time millennial buyers actively look for houses with charging stations.

It’s among the top five features 60% to 70% of these buyers want, in part because they own an EV or intend to purchase one in the next year or so, Vats says. But it’s also because of their ideology that they want to be green. As a result, he finds it’s easier to market a house with at least one station, he says. 

But Vats finds that if a house lacks a charging station but has everything else a buyer wants, it doesn’t kill the sale. Most stations he sees are located in a garage, but some are on the side of the house.

Architect Joshua Zinder, a managing partner at JZA+D(link is external) in Princeton, N.J., is among those who think a station is a good investment. “The developers and builders we work with are considering support for EVs for all residential projects, both single- and multifamily,” he says.

Zinder also finds that EV-ready homes command a premium in most markets. He added to his home a charging station with a 110-volt outlet, providing an overnight charge for a range of 30 to 50 miles, which suits most of his day-to-day needs.

However, salesperson Jeff Rosenbloom, with Red Oak Realty,(link is external) has found that buyers in his East Bay area of San Francisco rarely make a station one of their top five criteria. If a home happens to have green features, that’s good, but they’re not seeking them out, he says. “Maybe, they’ll add one once they own a house, but usually only if it has solar panels,” he says. 

When it comes to the multifamily housing market, charging stations seem to command a high level of interest, and more developers are including the feature or at least wiring buildings they’re constructing so they can be added. “It’s less costly to do so at the start of a project than as a retrofit,” says developer David Goldman, co-CEO of Chicago-based Belgravia Group(link is external), whose firm now designs all its multifamily buildings with stations. “It’s not even a question if we do it anymore,” he says. And Dranoff Properties,(link is external) in Philadelphia, included four at its One Riverside project and will have eight at its Arthaus development.

Another reason developers are installing stations is that they’re relatively inexpensive at the time of construction as long as the building or home has the electrical capacity. Then, it’s the cost of the system, plus an electrician’s hourly labor charge.

However, in an existing building, installation costs more. Architect Jay Szymanski, a principal at The Architectural Team (T.A.T.)(link is external) in Chelsea, Mass., says the cost to install a two-port charger in some urban areas can be as much as $20,000. That may include an upgrade in capacity for the electrical load, according to Seth Cutler, senior vice president of technical operations at EV Connect, who says the typical upgrade costs between $1,500 and $7,500.

Still, there are other reasons developers add them: In some municipalities and states, for example, it’s become a requirement that new buildings include some, says Layton. Keith Gillan, president of Maryland-based Murn Management(link is external), part of Murn, which also does development and construction for multifamily communities, says that’s the case in Howard County, Md.

Szymanski of T.A.T. says some cities and towns in Massachusetts are also mandating that developers include them in new multifamily properties, whether in Boston’s historic Beacon Hill, mixed-use rental complexes, suburban settings, or senior and assisted living buildings. “We’re now seeing projects where our team is asked to build in capacity and infrastructure for adding more stations in the future as well,” he says.

Manufacturers and utilities are also offering reimbursement incentives to make it enticing for building owners and homeowners to buy a station, though their programs differ, Layton says. Many developers take the attitude of maximizing savings for capital expenses and provide them to future-proof a building, she adds. “It’s also a way for them to gain a competitive advantage in the same way individual washer-dryer units do in many markets,” Layton says.

Even some homeowners who don’t yet own an EV gravitate to buildings and houses that have charging stations. “They want to know they can have one if they buy an electric vehicle,” Goldman says.

Calculating the number of stations needed for a multifamily building can require some experience and data. Goldman’s firm is installing 12 spots with EV stations in its Triangle Square Condos development in Chicago, which will have a total of 72 units. The designated EV spots will cost $30,000. But the building is being designed so its electrical system can handle more if needed, even though Goldman anticipates that only 5% to 10% of buyers will opt for one, based on prior developments.

Apartment building developers are hopping on the bandwagon. Gillan of Murn Management includes one station for every 20 apartments. “Younger renters aren’t willing to pay more to have one but expect it,” he says. “We include it as an amenity, not a profit center.”

When guiding home buyers or renter clients, advise them to do their research. The biggest differences between varied charging formats are the voltage and the connection interface, says Szymanski. “With this kind of new and emerging technology, it’s important for developers, owners, and operators to build in as much flexibility and adaptability as possible,” he says. Gillan says it’s also important to know what software a station uses, the rate at which it provides electricity, and how it’s billed.

©National Association of REALTORS®
Reprinted with permission

More than a third of survey respondents ranked these two colors as their least favorite.

America’s least desired colors for home decoration: orange and pink.

This is the result of a survey of more than 1,500 consumers by Modsy, an online interior design service. More than a third of survey respondents ranked these two colors as their least favorite, Apartment Therapy reports on the findings.

“We associate orange with things that need our attention—traffic cones and construction signs—which can sometimes be overstimulating in a home,” Lindsay T. Graham, a social psychologist at U.C. Berkeley, told Apartment Therapy as a possible reason for the orange distaste in the survey.

Pink may be a calmer hue but “pink has become very gendered,” Graham adds. “We’re conditioned to think of pink as denoting something demure and feminine, and that association is so strong that it feels like a big statement to use it in a space.”

Purple and yellow also were low on the popularity list of consumers using them in home design. However, people who did use these colors tended to report positive associations with the space they live in, the report notes.

Overall, homeowners favored the color blue in home decoration, often attributing a calming effect to the color, according to the Modsy survey. The top five favorite colors to use in home decor are white, green, black, and brown.

Read more about color trends in a home:

Hot Home Trend: Paint it Black

2021’s Most Popular Paint Colors in Pictures

Choices for 2022 Color of the Year: Green Is Gold

©National Association of REALTORS®
Reprinted with permission