The American Dream & Boob Lights

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Why homeownership truly is the American dream

The three main reasons why owning a home is still a big component of the American dream.

1. There are proven psychological, physical and financial benefits to homeownership.

“You own your little corner of the world. You can customize your house, remodel, paint, and decorate without the need to get permission from a landlord.” That’s pride of ownership. 

But aside from the positive psychological effects of owning a home, homeowners in strong markets build equity. 

2. Homeownership positively impacts American families.

From having room for your kids to play to being able to entertain to having space to do the things you love, owning a home helps people realize their full potential.

It also provides a greater sense of stability and opportunity, while growing personal wealth. Homeownership by those who make down payments, and who stay in their houses over long periods of time can result in better academic and emotional outcomes for children.

3. People who invest in their home, invest in the community, and thus improve the local economy.

Nearly 60 percent of Americans own their homes, and for good reason. The National Association of Realtors points out the many social benefits, which include civic participation, financial education and poverty improvements.

Plus, a person who cares for their home is more likely to care for their community through donations and volunteer efforts that keep their neighborhood and schools safe, livable and thriving. In other words, you help yourself and others contribute to a fundamental sense of belonging and responsibility to the wider community.  

Homeownership also plays a critical role in the economy. 

According to the National Association of Home Builders, building 100 average single-family homes generates 305 jobs, $23.1 million in wage and business income, and $8.9 million in taxes and revenue for state, local and federal governments. 

Rents are rising, but the US lacks sufficient middle-income housing

Rents are climbing and more higher-income Americans are choosing to lease rather than buy, but while those conditions are a boon to investors many middle-income earners are nevertheless facing a lack of housing supply.

New research from data firm CoStar paints a picture of an overall booming U.S. rental industry that has seen uneven growth across different parts of the market. For starters, much of the multifamily housing being built today tends to be high-end luxury units.  The number of renter households in the U.S. has grown the most among those earning more than $100,000 per year. And those renters are being attracted to the locations and benefits of living in well-connected urban hot spots. 

CoStar found that since 2015 rent has grown by about 4 percent each year, which is between 1 percent and 1.5 percent more than incomes. The current tendency of people to move out of pricey states as they face affordability woes and into more affordable ones is well-documented, and is typical of what happens as an economic cycle reaches its high point.

All of this represents something of a two-edged sword: On the one hand conditions are tough and getting tougher for renters, but on the other those people who can afford to step onto the investment ladder stand to make reliable returns as rents continue to rise.

Home price growth accelerates for first time in 14 months

For the first time in 14 months, home price growth is accelerating.

Nationwide, home prices grew by 3.6 percent in May year-over-year and 0.9 percent from April, according to the latest data from CoreLogic. At 10.7 percent, Idaho had the highest growth rate out of all the states. Utah and South Dakota followed at 7.8 percent and 7.7 percent, respectively.

The growth can be attributed to a strong job market and decreased mortgage rates, according to CoreLogic. 

CoreLogic predicts that home prices will see even steeper growth in the coming year — 0.8 percent by next month but 5.6 percent by May 2020.

Due to years of consistent home price increases, many buyers are worried about their ability to afford a home. According to CoreLogic, 28 percent of homeowners are worried they won’t be able to afford buying a new home in the future. Only half are satisfied with the number of options available in their market while 40 percent believe they will have to relocate

Trump creates affordable housing council, taps Ben Carson as chair

Amid a growing sense of national crisis over the cost of housing, President Trump created a new government council Tuesday and tasked it with clearing “regulatory barriers,” such as zoning, that get in the way of building new homes.

Ben Carson — who leads the U.S. Department of Housing and Urban Development — will now also serve as the chair of the White House Council on Eliminating Barriers to Affordable Housing. In an executive order, Trump said the role of the council would be to increase the supply of homes in the U.S. in an effort to meet demand.

Trump also singled out an array of specific regulations that he argued are getting in the way of housing construction. The regulations include zoning, limits on population density, “undu...