At one point in time, the American Dream was synonymous with homeownership. Today, there are many hurdles that are holding Americans back from homeownership – including the affordable housing crisis, housing prices, interest rates, inflation, and so much more.
On today’s show, we’re going to discuss the reality of homeownership in the United States and why the cost of owning a home has risen exponentially in recent years. We’re also going to discuss the role of build-to-rent real estate in the market. Click play to learn more on this episode of Investing in Real Estate!
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The Federal Reserve Bank of New York recently released its 2024 Survey of Consumer Expectations Housing Survey, and let me tell you, it paints a depressing picture of the future of homeownership in America.
The survey emphasizes Americans’ growing anxiety over rising housing prices, especially among renters who are losing their grip of aspirations for future homeownership. They’re just watching the American Dream being flushed down the toilet. In fact, renters’ confidence in the ability to ever buy a home was reported at a record low of 40.1%.
The prospect of buying a home has shifted from a probability to a pipe dream for many Americans. Today, many people are experiencing serious financial hardships, with no end in sight. We know that credit card debt is at an all-time high, most Americans have little to no savings, and inflation has changed every aspect of how people live..
These facts are unsettling for many, as owning a home has always been the key ingredient in achieving the American Dream. In a LendingTree survey taken last year, it was found that 94% of consumers felt that owning a home is part of the American Dream.
And for those who are able to slowly save up for a down payment on their first home, the economy pushes back with more hurdles, making the likelihood of homeownership close to zero.
Plus, even if people could afford to buy a home, there simply aren’t enough available. And we know that the rental market is not spared from price increases. Respondents in the SCE Housing Survey predicted a steep 9.7% jump in rental costs in the coming year, nearing the highest forecast in the survey’s history.
This is in part, a reason why I’m so passionate about build-to-rent homes. Not only does this approach to investing fill in some of the gaps in the affordable housing crisis, but it does so without encroaching on potential homebuyers.
Although unable to buy a house, renters are getting a small slice of the American pie by living in a rental home. Build to rent properties can offer renters the feeling of having a home. More and more renters are looking to break out of apartments to find actual houses in communities with good schools and amenities – all without the high cost of homeownership that we’re seeing today.
Build to rent real estate corners an important piece of the market by offering a great product to both investors and tenants. If you’re interested in learning more about what we do at Morris Invest, you can schedule a free call at morrisinvest.com.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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