Home Ownership and the American Dream

By Billy Yerman

CEO – The Strata Group

A poll released this week by The New York Times and CBS News provides a snapshot of Americans’ attitudes toward the value of home ownership.

Guess what? Ninety percent of respondents said that home ownership is an important part of the American Dream. Still. After years of turmoil in the housing market, the employment sector and the general economy. Nine out of ten people still thought that owning your own home is an integral part of the American Dream.

Pretty amazing. Especially when you consider that nearly 25 percent of those same people stated that their home is worth less than what they owe on their mortgage – in other words, they’re underwater. How is that possible?

I’ll tell you what I think. First, most of the people surveyed think that the economy will get better. They may not know when, but they believe that it will improve over time. And that means the housing market (and the value of their current homes) should also improve.

Second, although people understand all of the factors that should be detracting from the value of home ownership, they still want to own a home. While everyone trumpeted the economic incentives for owning a home during the housing boom (home ownership as an investment), I think they overlooked an important point. The desire to own your own home is visceral. And many of the rewards of home ownership are emotional.

Let me expand on that concept, because I think it’s central to understanding what seems to be a paradox at first glance. Yes, home ownership is an historically sound financial investment – but that’s only the beginning. First and foremost, your home is where you experience your life, and the life of your family. It’s the place where you raise your kids, celebrate holidays and experience the joys and occasional sorrows that make up the fabric of your life. Your home is an investment in something far more valuable than money. It’s an investment in time – the most precious commodity there is.

This emotional commitment lies at the heart of the concept of home ownership and the American Dream. You can scoff all you want, but I believe that the American Dream is real; in fact, I think it has been a prime driver of our nation’s success. We are what we believe, and in this country many of us believe that home ownership is the bedrock of a successful life. That’s why – in the face of considerable evidence you could cite to the contrary – nine out of ten people surveyed believe it is so.

Let me know what you think – whether you agree or disagree. That’s how it works in America.

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Yerman Witman Gaines & Conklin Realty is one of six complementary business units that comprise The Strata Group, which is headquartered in Baltimore, and offers specialized products and services targeting the residential and commercial real estate sectors. Other divisions offer title and escrow, mortgage funding, law, financial and home sales marketing services and support.

For additional information, visit www.ywgcrealty.com or www.mystratagroup.com.