Rate of Home ownership Hits 50-Year Low

Rate of Home ownership Hits 50-Year Low

More Americans have become renters. The share of Americans who own their homes dropped to 62.9 percent in the second quarter, the lowest rate since 1965, the Census Bureau reported Thursday. That also marks the second consecutive quarterly decrease. In the previous report, the home ownership rate was at 63.5 percent – still far from its peak in June 2004 of 69.2 percent.

“One of the biggest hurdles now is affordability,” Mark Vitner, a senior economist at Wells Fargo Securities in Charlotte, N.C., told National Mortgage News. “Home prices are rising so much faster than incomes, so it’s hard for buyers to save for a down payment.”

Indeed, younger households are reportedly struggling to branch out on their own, unable to save for a down payment, amid heavy student loan debts and rising rental costs. The home ownership rate for 18- to 35-year-olds dropped to 43.1 percent in the second quarter, the lowest level since 1994, according to U.S. Census data.

But the numbers aren’t are all that dismal.

“The broader picture suggests a degree of economic strength: Renters are spurring a steady increase in overall household formation,” The Wall Street Journal reports. “Renter-occupied housing units jumped by 967,000 from the same period a year earlier. Overall, household formation has been fairly steady since the early days of the expansion. A rising number of households suggests more people are optimistic enough to strike out on their own and helps further spur growth as they buy furniture, start families and move up the economic ladder.”

The growing numbers of renters are still likely to one day become buyers. Case in point, 81 percent of 18- to 29-year-olds recently surveyed by the National Association of Home Builders said they want to be able to buy a home one day. What’s more, the majority all age groups of the more than 2,800 Americans surveyed say they view owning a home as a good investment.

Source: “Homeownership Rate Tumbles to the Lowest Since 1965,” National Mortgage News (July 28, 2016) and “U.S. Homeownership Rate Falls to Five-Decade Low,” The Wall Street Journal (July 28, 2016)

Ways to Get Others Talking About You

Ways to Get Others Talking About You

You can boost your business’ reputation without spending a dime, according to Forbes. To stay top of mind in your market, try these ideas for your online marketing:

1. Talk to the press.

Offer up your take on the local housing market to your local press. Pitch them a story about a real estate trend or home improvement idea you’ve noticed in your area. Or, write up a press release and even syndicate it by using tools like PRWeb.

2. Submit guest posts.

Get blogging! You may be able to increase your presence online by submitting a guest blog to other established blogs in your area or nationally. Make sure you know the audience you’re blogging for and that you keep your post targeted to them. Start with local publishers and niche websites before you work up to offering to guest blog for higher-authority publishers, Forbes.com notes.

3. Find those with influence.

Harness the power of influencer marketing. Identify a person of influence in real estate with thousands of followers on social media, and engage that person in a conversation and share some of your content with them. They may start to share your content to their audience – thereby, you can boost your reputation by using that person’s reputation.

Source: “7 Ways to Boost Your Brand’s Reputation for Free Online,” Forbes.com (July 2016)

Americans’ Top Housing Concerns?

Americans’ Top Housing Concerns?

It might not be all low inventory and high prices. It seems Americans have a confidence problem when it comes to the housing market. They’re increasingly apprehensive to move forward, citing concerns over the economy and job security, according to the latest ValueInsured Modern Homebuyer Survey, a measure of confidence in the health of the housing market among more than 1,000 home owners and buyers.

Americans also still express lingering concerns from the housing crisis of 2008, particularly millennials. Sixty-three percent of Americans and 72 percent of millennials say the crash worried them and impacted their decision to either purchase their first home or upgrade to a new one, according to the survey.

Cleve Bellar, chief marketing officer of ValueInsured says that though the results demonstrate “renewed confidence that housing is a smart investment,” he adds that it is “tempered by thoughtful consideration of the undeniable risks, especially given the recent uptick in security and economic events in the U.S. and abroad.”

And confidence could be the key to increasing the low rate of home ownership. Sixty-eight percent of Americans and 81 percent of millennials who say they want to buy a home add that they would do so sooner if they had more confidence in the housing market, the survey found.

The top concerns Americans’ expressed in the survey are:

• Global economy: 59% of Americans and 68% of millennials say that the global economic climate has them worried.
• American economy: 63% of Americans and 70% of millennials say that the current U.S. economy has them concerned about the risks of buying a home.
• National security: 48% of Americans and 61% of millennials say that national security is taking a toll on their home-buying decisions.
• Job security/mobility: 55% of Americans and 71% of millennials say that the possibility of a job change or loss has them concerned.

Source: ValueInsured

What Moms Want in a House

What Moms Want in a House

The configuration of the home is more important to buyers with children these days, Jeff Martel, a real estate professional with Better Homes and Gardens Real Estate, told MarketWatch.

“Ten years ago, the only thing families were looking for was square footage and a large yard,” he says. But now more family home shoppers are placing an open floor plan high on their list rather than separated rooms.

“Everything happens in the kitchen,” he says. “Kids use the islands now for breakfast, lunch and dinner.”

Here are other house features that parents desire the most, according to real estate professionals:

Office nook: Martel sees a declining interest in having a separate home office. Instead, he has more clients asking for an office nook off the main living space so that parents can better monitor their children while the kids are online. “You want a family office that’s very visible with a direct sightline to the kitchen,” he says.

Garage access: Location of the garage is also important, adds Lindsay Alteri, who works for BHGRE in Raleigh, N.C., and is also a mother of two young children. “If there are stairs to and from the garage, are you going to be willing to go up and down them carrying a child” in from the car? she notes.

Mud room: Also, a garage that walks into an area in the laundry room is desirable, adds Stacy Barry, a real estate professional at Century 21 Scheetz in Indianapolis. “You want a ‘mud room’ that has a bench and some storage for boots that’s done in a hardwood or laminate where you can drop everything like backpacks and jackets,” Martel adds.

Built-in storage: “Kids come with clutter,” Martel says. Parents are wanting a lot of built-in storage in bedrooms, attics, spaces under stairs, and even hidden storage behind bookshelves.

Source: “What Moms Look for When Buying a House,” MarketWatch (June 19, 2016)