This week I connected with friends living in 'exotic places' like Washington DC, Seattle, NYC, Madison, & Minneapolis. Only one owns, the rest rent. Why is that? Isn't the American Dream to own your own home? What gives?
I had to investigate. As of 12/2015, 63.9% of Americans own a home, but this varies dramatically by age. In general, following the 2008-9 financial crisis, home ownership has dropped, the with the most significant drops being for those under 44 years old (generation y or younger). Only 35% of those under 35 own, meanwhile approximately 80% of those over 65 own their home. As baby boomers age, and potentially 'downsize' or seek assisted living options, more houses could enter the market. This could impact upcoming housing starts for new construction.
I then got curious what the home ownership rates were in other countries that are similar to the US.
Canada: 66.5% (12/2014)
Australia: 67% (12/2011)
UK: 63.5% (12/2015)
Japan: 61.9% (12/2013)
Germany: 51.9% (12/2015)
All pretty similar to the US except for Germany....why? Two reasons: Germany has more stringent processes for getting a mortgage than the US, and tax code (property owners are not favorably treated like here). My dreams of owning a home is Austria have been shattered as well--Austrian home ownership closely mirrors Germany.
Home ownership rates also vary by state, the more 'rural' or having less population density seems to overlay with higher potential home ownership rate.
My key takeaways:
1) Iowa is a more approachable to buy a home in compared to many other places in the US.
2) Finding the above statistics leads me to more questions....I wonder what the average home selling price is by state?
Seek and you shall find!! Iowa ranked #39 with the average sell price being $130,900.
Highest average sell price: Hawaii @ $547,600
Lowest average sell price: West Virginia @ $88,900 (not surprising they lead in homeownership!)
Here is a Sweet Heat Map of Home Prices
Oh, did I mention I love statistics?
Have a good weekend--
Hi, I am Summer, real estate agent in NE Iowa. This blog is about life, of which Real Estate is a part of. Happy reading!