
The Perils of Homeownership: Why Attitudes are Changing

"With the sudden run-up in foreclosures, you're starting to see people ask, is housing a good investment? In fact, it probably never was." The New York Times ran a story on January 7th called Men Who Jump the Picket Fence. Journalist Michael Tortorello interviews several homeowners, all of whom express a different type of dissatisfaction with their recent decision to buy their home.
One Minneapolis man lamented how his lifestyle had changed from spending time out with friends at jazz clubs to spending entire days rearranging furniture. "This is how people live? Why am I doing this?" questioned Alan Berks. He also complained about not being able to walk anywhere. Kirt Greenburg of Atlanta keeps spreadsheets of work that needs to be done around his house. He has spent $130,000 on repairs so far. Hanyul Lee purchased a newly constructed condo in Bedford, MA, and within a week the building began to fall apart: a wall cracked, the ceiling leaked, and rain came in through the windows, leading Lee to sue the developer. Nathan Quevedo of Merced County, California, saw the value of his new home decrease by half in two years. "I don't fault myself for wanting to have that American dream: a good job, a place to call my own for me and my kids," said Quevedo. "But I don't think that homeownership is essential for that anymore."
Some of these homeowners left that misguided American Dream behind for new options, such as renting and taking a 6-month trip to Honduras, as the Berks family did. Not only does renting combat many of the ills described by these people, but rental units tend to be located in more compact downtown centers where the quality of life is very high. Renting in downtown centers not only addresses these individual problems with homeownership, but through a broader lens this land use pattern provides a sustainable, economical way to live.
The article also makes an interesting hypothesis about gender and homeownership attitudes. According to a study by the Center for Community Capital at the University of North Carolina- Chapel Hill, men and women under age 40 are about equally as satisfied about homeownership. However, according to the National Association of Realtors (NAR), single women represent 21% of home buyers while single men represent just 10%. That gap has been expanding in the last decade. The reasoning behind this data can only be hypothesized. "Younger single men may be more likely to change jobs and cities...They may be more willing to squeeze into an apartment with two or three buddies. Or they may be cowering in the nest with Mom and Dad," considers Paul Bishop, Vice President of NAR.
According to William Clark, a geography professor at UCLA whose quotation opened this article, the "fairy tale" of living happily ever after in a house began to change in the 1970s, when people began to see buying a house as an investment, "high-flying stocks that happened to come with wine cellars and four-car garages." Of course, the current real estate market is helping to shake up attitudes on homeownership. Like Mr. Quevedo said, it's time for a new American Dream. |