Kerby Anderson
“Owning a home has long been considered the quintessential American dream, but the path to those white picket fences is far from smooth.” That’s how a recent survey by Lending Tree opened its article. The survey found that 84 percent of Americans said they’d like to own a home one day. A majority (51%) of those who don’t own today worry they’ll never get there.
Glen Beck, in his book Dark Future, confirms that “after decades of homeownership being an essential part of life in America, a trend has developed that’s transforming the United States into a nation of renters.” Part of the reason is increasing cost. According to the St. Louis Federal Reserve, the average cost of buying a home at the end of 2022 was more than $152,000 higher than it was just two years earlier. The National Association of Home Builders found in their 2021 study that regulatory costs for new homes across all levels of government increased by $94,000.
A significant majority of Americans own their homes, but the future trend is not as promising. The number of first-time homebuyers declined to just 26 percent in 2022, which is the lowest level since the National Association of Realtors began tracking data. That figure also represents a significant drop from 34 percent one year earlier.
Owning a home is an important part of building wealth for most households. But being a homeowner also provides freedom. Landlords can impose all sorts of requirements and regulations if you are living under their roof. Renters face prohibitions against pets, parties, smoking, and alcohol. You may have the constitutional right to own a firearm, but a landlord can ban you from possessing a weapon while renting a dwelling.
We aren’t a nation of renters yet, but the trend is in that direction.