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| By Marietta Rodriguez director, National Homeownership Programs & Lending |
The boom and bust of the housing industry in recent years
has fueled doubt about the value of homeownership and caused many to re-examine
the long-held belief that homeownership is a viable path to a stable and
successful financial future.
In a recent report, our network member, Homewise, makes a strong argument that homeownership is still a smart choice, and that current market conditions offer an unprecedented opportunity for Americans to advance to economic ladder. According to their research, the typical homeowner purchasing a $200,000 home today, will amass nearly $500,000 dollars more than a renter over a 30 year period. Homeownership also provides important non-economic benefits, like stability and security, which are important for personal happiness, child development and family unity.
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However, for the benefits of homeownership to be fully realized, the purchase must be sustainable and must be a good fit for the personal and financial needs of the buyer. The buyer’s stage of life must also be considered. For example, younger buyers must weigh the financial advantages of homeownership against the risks of needing to quickly relocate to pursue a job opportunity.
To help individuals understand which option is right for
them, NeighborWorks America has dedicated substantial resources to training a
network of HUD-certified counseling agencies and to establishing a network of
NeighborWorks HomeOwnership Centers throughout the country. Every day the
NeighborWorks Network members provide people across this country with services
ranging from financial education to individualized homeownership counseling in
preparation for making an informed homeownership decision. The homeownership counselors
help customers decide what next steps are best for them and their long term
happiness and prosperity —
sometimes this is a new house and
sometimes it is finding an affordable rental or repairing credit. 
My hope is that the economic crisis will leave us
understanding the importance of a middle ground for homeownership. It is
neither a fast track to wealth that some imagined during the boom years nor is
it the folly its critics claimed after the foreclosure crisis had begun.
Homeownership is an individual choice that when pursued with eyes wide open and
focused on personal and financial goals could be the basis of a great future.To read Homewise’s recent reports on homeownership, click here.
To find a homeownership counselor, visit www.nw.org.
1 comment:
Marietta, thanks for the informative article. While you mentioned the the value of the Homeownership Centers and housing counseling, it is important to remember that through no fault of their own, not everyone qualifies for a 3% mortgage and many prospective borrowers are required to put 20% down to buy a home. With a purchase price for even a "starter home" breaking $100,000 to $200,000 or more, plus closing costs, buyers will often need $20,000 to $40,000 or more cash to buy a home. That is not easy or possible for many people. For some, renting is a choice, for others it is a necessity. In either case renters should not feel inferior or ashamed to be renters like they were in the bubble days. It is also important for decision makers to provide affordable housing opportunities, both purchase and rental for those with limited income. Everbody benefits from truly diverse communities. Best Wishes, Rob Strupp
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