The American dream is one thing that crosses party lines.
You might disagree on how our country should operate, but there’s one thing you can agree on: Owning a home is important.
Zillow says regardless of party affiliation, nearly two-thirds of Republicans and Democrats agree that homeownership is “necessary to living the American dream.” Even more believe owning a home will increase a person’s reputation locally.
“In a time of political division, these survey results remind us of something most Americans share – the sense that owning a home is a big part of living the American Dream,” says Zillow chief economist Svenja Gudell. “Homeownership — and its ability to create wealth, stability, and community — doesn’t depend on political affiliation.”
After the housing market crash of 2008 and the recession that followed, millennials are starting to rebound with homebuying — something they put off after graduating college — and away from renting.
Even as many Americans are hesitant to buy a home because of soaring home prices, most still believe that owning a home is the best long-term investment. Despite fears of affordability, it’s still the top way Americans believe they will be financially secure if they own a home.
According to the Zillow survey, Los Angeles is one of the least-affordable housing markets in the country. It’s not surprising: California is one of the worst places to save money, whether it’s for homebuying, renting, or retirement. Residents there expect to wait at least three years to buy a home due to affordability problems (and 40 percent of West Coasters as a whole plan on putting it off for at least five years), even as nearly 3-in-4 of them say owning a home is important to achieving the American dream.
If you believe owning a home is important to your long-term financial future, there’s a strong chance you need to move somewhere else to afford to buy one. Try going to Mississippi so you can stop living paycheck-to-paycheck and start saving. Mississippians are pocketing nearly half their income after expenses, while Californians are saving about 6.5 percent of theirs. You can also move to Texas for cheap homes.
Most big cities around the country are going through a major housing boom right now. Rising mortgage rates have been hurting many first-time hombuyers’ chances to make the leap this year. Although if they can swing the cash, it’s easier to get one, as it’s taking less time to close on a house than in past years.
If you’re unsure about buying a home, you’re not alone. Covering the costs of a down payment are keeping many would-be buyers as renters. Mortgage rates aren’t the only costs climbing, as home values are also making it harder for Americans to save up enough money for a sizeable down payment. They’re renting, hoping to save more money that way.
It’s hard for them, too, though: property owners know that renting is rising since homebuying isn’t. So they’re making sure to cash in on the climb by increasing rents. For many, they are being priced out of renting just like they’re being priced out of homebuying. Americans have it hard either way they try to live, so the rent verses buy debate continues.
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Article last modified on July 10, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Politics Doesn’t Matter When It Comes to Buying Homes - AMP.