In light of the economy, it’s no surprise that houses aren’t selling well. But can we simply chalk this up to a rough economy and a shaking mortgage market? Or, is it possible that the very meaning of homeownership is changing for the generation who should be buying homes?
The Arizona Republic reported that there are two main reasons that people are not buying homes: they either can’t buy them, or they won’t buy. The economy is a factor here for many families. Not only are people making, on average, less money, but it is becoming increasingly difficult to get a loan to buy a home. Despite extremely low interest rates, lending guidelines are stricter than they have been in a long time. In some instances, people with what would have been great credit ten years ago, can’t get a loan today.
But the more interesting reason for people not buying homes is that they won’t buy. With the job market as shaky as it is, many recent graduates and young professionals don’t want to set down roots quite yet, in case they need to move for a job. Besides, after seeing close friends and family lose their homes or end up owing more than the home is worth, many would-be first-time home buyers just aren’t willing to get burned.
Nostalgic home owners will tell you what it meant to buy a home in “their day.” But has home ownership come to mean something different than it did? And what does this mean for the new families branching out on their own?
One thing that it does mean is this: people who would be looking to buy this time ten years ago are only interesting in renting. That means that with record low interest rates and home prices, now is the perfect time to invest in a rental property.
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