HOMEOWNERSHIP STILL THE AMERICAN DREAM

HOMEOWNERSHIP STILL THE AMERICAN DREAM

There has been some who have voiced doubt as to whether or not the younger generations still consider homeownership as being part of the “American Dream”. A recent study by Merrill Lynch puts that doubt to rest. According to their research, every living generation still maintains that owning a home is in fact important.
(The results are on the right)

This should not surprise us as many studies have revealed the benefits of homeownership enjoyed by the families who own their own home. One such study was done by the Joint Center of Housing Studies at Harvard University that addressed a major financial benefit to owning your own home: forced savings. The report explains:

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

The Merrill Lynch study proves this point with the home equity data on the right (a form of savings).

Bottom Line

There are many reasons that owning a home makes sense. The financial reasons are powerful. As one participant in the Merrill Lynch study put it:

“When I was younger, I always worried about that monthly mortgage payment. Now that I am retired, I have the peace of mind of knowing I own my home free and clear.”