Industry NewsMarkets & Economy

A view on 62% homeownership

Perspective: Real estate's July report card

Our recent experiences in Washington, D.C., confirm that homeownership is clearly a value that is promoted by most politicians. They are in for a rude awakening, however, and a legacy that they will not be proud of. Eight million homeowners are currently not paying their mortgage, and we believe 6 million of them will lose their home to the bank in the next two years. This will reduce the homeownership rate to 62 percent, as follows: According to a recent study, another 5 percent of all households, which roughly equals 5 million additional homeowners, have no equity in their home. This suggests only 57 percent of U.S. households own a home with equity value. If you believe that many will strategically default, this will push homeownership even lower. Here are the many variables that will affect homeownership over the coming years:Aging demographics -- If we built a fence around the U.S. and did not let immigrants in, homeownership would go up due ...

Comments