Homeownership hits 18-year low amid more renters

[squeeze berry]

perhaps many people have come to realize that home ownership is not the great investment touted by the housing industry and the feds.

When I was single and rented I maxed out both my 401K and IRA and still had money left over for buying bonds, putting money into a credit union account, buying stocks and some left over for discretionary spending.

Now that I'm a DINK and have a mortgage, everything goes into our money pit.

Unfortunately landlords have caught on and renting is not as much as a bargain as it used to be.

the money you put into rent is gone. If you choose wisely the money you put into your home should pay back with interest. My home has double in about 21 years. I just wish I would have bought a more expensive house.

how much have you put into it?

add up principle
interest
maintenance/repair
renovations

things like mowers, step ladders, dehumidifiers et al

I just know what the difference in the two has meant to me.

 

[g5000]

The CRA has been around for 36 years. Nothing to do with home ownership hitting an 18 year low.

Yep.

All those reality shows of people flipping their houses for fun and profit during the boom; big, happy, shiny, middle class white people.

 

[g5000]

perhaps many people have come to realize that home ownership is not the great investment touted by the housing industry and the feds.

When I was single and rented I maxed out both my 401K and IRA and still had money left over for buying bonds, putting money into a credit union account, buying stocks and some left over for discretionary spending.

Now that I'm a DINK and have a mortgage, everything goes into our money pit.

Unfortunately landlords have caught on and renting is not as much as a bargain as it used to be.

the money you put into rent is gone. If you choose wisely the money you put into your home should pay back with interest. My home has double in about 21 years. I just wish I would have bought a more expensive house.

My house doubled in a quarter of that time. I bought it in 2001 and sold it at the peak in 2006. Then I rented for three years, and bought another house at the bottom. I have a bigger house, and a lot more money.

 

[kaz]

Homeownership hits 18-year low amid more renters

Owning while Obama is President is like buying beach front property with a hurricane on the way...

 

[AceRothstein]

perhaps many people have come to realize that home ownership is not the great investment touted by the housing industry and the feds.

When I was single and rented I maxed out both my 401K and IRA and still had money left over for buying bonds, putting money into a credit union account, buying stocks and some left over for discretionary spending.

Now that I'm a DINK and have a mortgage, everything goes into our money pit.

Unfortunately landlords have caught on and renting is not as much as a bargain as it used to be.

the money you put into rent is gone. If you choose wisely the money you put into your home should pay back with interest. My home has double in about 21 years. I just wish I would have bought a more expensive house.

how much have you put into it?

add up principle
interest
maintenance/repair
renovations

things like mowers, step ladders, dehumidifiers et al

It is all about location, location, location. My parents bought their house in 1980 on the south side of Chicago (one of the few good areas in that part of the city) for $33k. They would get close to $400k today if they sold it. They've put a fair share of money into it but they are going to come out WAY ahead when they do sell.

 

[zeke]

Glass Steagal WAS the prime factor in opening the door to what followed. Mortgages belonged to the banking world with all their stuffy rules and regs. And the housing market functioned fine. Investments other than mortgages belonged in the investment banking world. Where people took higher risk for more reward. Why do you think the Repubs in Congress worked so long and hard for its repeal. They thought they KNEW what that repeal would allow. High returns with no risk to the lenders and no regs and rules.

Boy were they wrong.

 

[g5000]

It is truly amazing to me the CRA meme is still going around as one of the causes of the crash. Truly amazing. That is one of the more ridiculous urban legends out there.


As for home ownership dropping...good! The only people buying houses should be the ones who can afford them.

When you stop the banks from giving loans to anyone with a pulse, then OF COURSE you are going to see home buying drop.

Problem is that people owning their home is good for all of us. Neighborhoods stabilize, consumer spending on items for the home goes up, neighborhood pride goes up, market values increase and the families net worth should go up.

And it was not "banks" that were giving every swinging dick in the world a loan.

Actually, from speaking with friends still in the industry, the loan standards that swung so lenient have now gone the other way and you have to jump through every hoop that the lender can put in front of you to get a loan.

That's overkill. Then of course you have a lot of people who can't qualify for ANY kind of mortgage loan. Bad credit, no down payment, greatly reduced income, foreclosure in the past, etc etc.

Then there is the problem from the sellers side of the transaction slowing sales because of appraised values.

Most of Americans net worth is/was tied up in their home. That equity was the basis of the feeling of wealth. Would allow Americans to spend money more freely. But those days are gone for awhile.

But it would be better for all if the home ownership rate was climbing instead of falling. IMO.

I use "banks" as a generic term. I used to use "financial institutions" and "broker-dealers", but that got tiresome.

Same thing with "Wall Street". The derivatives bubble was global, not just based in New York. But I got tired of pointing all of that out every time, too. "Banks" and "Wall Street" are rhetorical shortcuts. Like "Main Street".

 

[g5000]

As for tightened lending standards, they have swung too far the other way. I agree. But it has nothing to do with Obama. It is partly because "banks" are now making giant carry trades, instead of lending, to recover their losses and to facilitate their deleveraging. They are being aided and abetted in this by the Fed.

There are huge risks involved in this process. Huge risks.

 

[OnePercenter]

Glass Steagal WAS the prime factor in opening the door to what followed. Mortgages belonged to the banking world with all their stuffy rules and regs. And the housing market functioned fine. Investments other than mortgages belonged in the investment banking world. Where people took higher risk for more reward. Why do you think the Repubs in Congress worked so long and hard for its repeal. They thought they KNEW what that repeal would allow. High returns with no risk to the lenders and no regs and rules.

Boy were they wrong.

Recession Is "Mental," America Is "Nation Of Whiners" Phil Gramm(R)

 

[JakeStarkey]

We can thank the far right conservative GOP Congress from 1994 to 2006 with complacent Bush and Clinton, and their Dem allies in Dodd and Frank.

 

[squeeze berry]

We can thank the far right conservative GOP Congress from 1994 to 2006 with complacent Bush and Clinton, and their Dem allies in Dodd and Frank.

there is no such thing as a far right in this country that has any political power whatsoever.

You are a fucking liar

 

[boedicca]

News Flash: Coercing people who can't afford a house to buy one isn't doing them any favors.

Just sayin'.

 

[JakeStarkey]

We can thank the far right conservative GOP Congress from 1994 to 2006 with complacent Bush and Clinton, and their Dem allies in Dodd and Frank.

there is no such thing as a far right in this country that has any political power whatsoever. ou are a fucking liar

That's you my friend. Yes, Tom DeLay, Dick Army and the rest screwed us all for a number of years, and the housing mess was one of them.

Your lies only unman you.

 

[Political Junky]

The fact that more people live in urban areas might have something to do with fewer homeowners.