The other day Marc Davison, a good friend and founder of the marketing, design & strategy firm 1000watt, forwarded us a booklet released by Ford entitled 13 TRENDS FOR 2013. It is a must read for all businesses as it clearly states the thirteen consumer trends that will help business dominate 2013. However, we had one objection to something mentioned in the report.
In Chapter 12, they make the statement:
“The home-ownership dream is dissolving.”
Ford substantiates this claim by saying that
“Just 12% of whites between age 18 and 34 told Pew that owning a home was ‘one of the most important things’ in their life.”
We were so shocked by this assertion that we decided to research the claim. The citation at the back of the Ford publication led us to an article in The Atlantic in February 2012. The article led us to the actual report by Pew Research. Those surveyed were asked to choose which of the following goals would be ‘one of the most important things in their life’. Here are the results for all respondents between the ages of 18-34 (they could pick more than one):
- Being a good parent – 54%
- Having a successful marriage – 34%
- Having a job/career that benefits society – 22%
- Owning a home – 18%
- Being successful in a high paying career – 15%
- Becoming famous – 1%
The Pew report revealed that people would rather be a good parent, a good spouse or a good person rather than own a home. We definitely agree with that!! However, what their report DID NOT state is that “the home-ownership dream is dissolving” for young adults between the ages of 18-34.
The Opposite is True
A plethora of studies in the last twelve months by such groups as the Joint Center for Housing Studies at Harvard University, Trulia, Fannie Mae and Realogy prove the exact opposite is true. Here are some examples from these studies:
- 43% of adults between the ages of 18-34 already own a home
- 72% of adults between the ages of 18-34 say homeownership is part of their personal American Dream
- 93% of adults between the ages of 18-34 that currently rent plan to buy a home
- 79% of those under the age of 25 and 86% of those between the ages of 25-34 believe that owning is financially better than renting
- 75% of adults between the ages of 18-34 see owning a home as a fundamental indicator of success
The Ford booklet is great. However, as usual, truly accurate information about the housing market is rare. That is why you should always look to the real estate expert in your market for the best advice.