Currently, the U.S. is near a 50-year low homeownership rate despite the improving local job markets.
Many would be home owners face challenges of student loan debt, tighter credit conditions, and a housing supply shortages. Having a downward trend in homeownership causes many economic faults. When people own homes, the local community and national economy benefit.
Boosting the homeownership rate needs to be done in a safe and responsible way. By tackling the main issues that have caused a significant number of households from purchasing a home, the right people will be available to purchase.
Overcoming Post-Foreclosure Stress Disorder:
For the 9 million homeowners who experienced foreclosure and the 8.7 million people who lost their jobs during the previous economic crash, approaching homeownership again can be a terrifying feat. Targeting programs and workshops about financial literacy and mortgage debt could help return-buyers and those who may have negative biases about owning. This will calm fears and bring back positivity to homeownership.
Standards for credit have yet to normalize. Borrowers with good-to-excellent credit scores are not getting approved at the constant rate they were in 2003. A restoration of safe lending requirements is the key to helping creditworthy households purchase homes.
Student Loan Burden
Student loan debt makes it extremely difficult to save for a down payment. Qualifying for a mortgage and affording a mortgage payment seems impossible for many people.
Lack of Affordable Single-Family Housing
Higher rents and higher home prices make it difficult to save for a down payment. Add in the reality that there are less options available as investors are weighing on supply levels by scooping up single-family homes. Many markets are experiencing decaying affordability conditions.
Conditions need to be met to allow people the opportunity to purchase homes again; without causing the issues the mortgage economy faced back in 2008.
All my best,
Picket Fence Properties, located in Windsor, CO is Northern Coloradoâ€™s Top Notch Property Management company helping owners with their rentals, income/investment properties and vacancies in Northern Colorado. Are you a owner of a home for rent or that youâ€™d like us to manage? We help you have the perfect tenants in NoCO. Are you looking for somewhere to rent in Greeley, Loveland, Fort Collins, Wellington, Eaton, Evans, Windsor, Frederick, Firestone? Look no further, we have all your real estate and rental needs covered. Check out website for vacancies today.