Homes are good investment but affordability concerns say consumers

Most Americans say that homeownership is a good investment but many are concerned about affordability

Homes are good investment but affordability concerns say consumers
Most Americans say that homeownership is a good investment but many are concerned about affordability.

A new survey from the National Association of Realtors shows that, while 84% of respondents agree that owning a home is a good investment, the highest level since 2007.

Most respondents said that building equity in a home rather than boosting the bank accounts of landlords was their primary reason for viewing homeownership as a good investment. The second highest reason given was a mortgage-free home to boost retirement wealth.

Affordability is an issue for many though with 40% of white Americans and more than half of non-white Americans saying a lack of affordable housing is a big problem. The issue is bigger in the top 25 densest markets and among the working class (65%) and public servants (55%).

"Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home," says NAR president William E. Brown.

The survey also found that four in 10 Americans say paying their rent or mortgage is a strain on their budget. Those most likely to say their mortgage is a strain have incomes under $60,000, are residents of New York City or the Pacific coast, are under the age of 50 and non-white.

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