Home Ownership Lingers as Part of the American Dream, While Renting Becomes Increasingly Popular

By Gretchen Wegrich

As the recent recession lingers, Americans say they still value the American Dream of home ownership. A new survey from the MacArthur Foundation discovered that a transformation in views of homeownership is underway accross the nation. Renting is increasingly viewed as a viable option and many Americans believe the housing crisis is far from over.

"America is going through a transformational period," said Peter Hart, chairman emeritus of Hart Research, which oversaw the study comissioned by the MacArthur Foundation. "The unexpected is becoming the expected... [and] housing attitudes are indeed part of this new transformational world.”

This transitional period is the lingering effect of the housing market crisis, as Americans express views shaped by an housing market in flux, record foreclosures, and financial mismanagement perpetuated by many banks and financial institutions. . 

For 72 percent of the survey participants, home ownership remains a future goal. Among renters under age 40, this number grew to 84 percent.

General insecurity about the economy may have contributed to the increased appeal of renting, researchers found. More than 50 percent of survey participants agreed that, given the nation's current economic situation, buying a home has become less appealing. Slightly more than 25 percent said buying a home had become more appealing. A similar percentage agreed that renting had increased its appeal since the financial crisis.

Renting and owning are not black and white, said Rebecca Naser, a vice president with Hart Research.

Naser added, “There’s a tendency for people to view attitudes about home ownership and renting like it’s a zero-sum game. [But] you can still aspire to owning a home and see renting in your future... People are being more methodical and careful in the housing choices they’re making.”

Hart spokespeople also indicated that increased life expectancy and changes in the timin gof major life events were have an effect on how the American people viewed home ownership. As marriage is pushed back and life expectency rises, housing preferences are also changing.

The housing crisis also seems to have shaped American viewpoints about the importance of housing, oftentimes through firsthand experience. A large majority of study particpants declared that housing had "major positive impacts" on the safety and economic security of communities and neighborhoods.

Three in five particpants in the study said they believe that unstable housing situations may majorly and negatively impact mental health, physical health, educational outcomes and parental relationships with the family unit. Many of these attitudes werre shaped by personal experiences throughout the recession.

“They’ve seen the impact of unstable housing,” Naser said. “The public really does have a strong sense of the vital role that housing plays.”

Three out of four survey particpants said the nation is either still in the midst of the housing crisis or that the worst of the crisis has not happened yet.

"The public has not seen or felt this turnaround," said Hart. "These people are living it on a day-to-day basis and they say, 'Sorry, I can't feel it, and I can't see it.'"

Gretchen Wegrich

Gretchen Wegrich is an editor at Lender411. She specializes in mortgage basics, personal finance and green living. She graduated with a bachelor's degree in writing from University of California, San Diego and previously worked at the Santa Cruz Sentinel. Contact her at gretchen@lender411com.