Tuesday, November 26, 2013

Are we becoming a nation of renters?

I just read a research article and a premonition of hard times to come has turned more evident. 
We are gradually becoming a nation of renters instead of home-owners. It is happening now at an accelerating rate. It is evident that people who rent will hardly possess any asset at their old age. 

The study addresses this reality. And it reflects what I have seen during the last few years.

I analyze what's happening in my business today. Most of my real estate sales are cash deals to foreign buyers, or vacation homes to wealthy out-of-town buyers.
The local resident is struggling with low income, insecure employment, ever harder requirements from mortgage lenders, and the remote possibility of saving enough for a downpayment. 

Most of these people are limited to renting, and will possibly have to do it for the rest of their lives, unless a significant change occurs in our economy, and its growing inequality can be reversed in the next few years.

And if they cannot put their savings in a home, they will most surely become senior citizens with no assets and no wealth.

Here is what I read:

Study compares home-ownership for older Americans 

AKRON, Ohio – Nov. 26, 2013 – New findings from the Research Institute for Housing America suggest that older U.S. homeowners are strikingly wealthier and generally healthier than their counterparts who rent.

Housing is the primary asset for Americans 65 and older – accounting for 50 percent of their total wealth, which comes in at a median of $273,000. By comparison, senior renters have median wealth of just $3,000.

The report, from the Mortgage Bankers Association’s research arm, recommends that policymakers tackle the issues of senior housing and health needs together.

“Housing demand over the next decade will be significantly impacted by the aging of the U.S. population,” according to Research Institute for Housing America executive director Mike Fratantoni.

Source: Akron Beacon Journal (OH) (11/25/13) Armon, Rick

Henry B. Nathan

Luxury Waterfront Real Estate Specialist

 United Realty Group 


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