Is the American Dream Still Alive?

It has been a long way back from the housing crisis of 2008. In fact, statistics show that the U.S. is still nowhere near where it was before the boom that led to the bust. Does this mean that home ownership is no longer the American Dream? Is real estate not a viable investment in today’s world?

A Slow Return

The good news in the housing industry is that numbers have improved from where they went when the market hit bottom. The bad news is that the recovery isn’t complete yet. That doesn’t mean that it won’t happen or that something is wrong with the economy. To understand where the housing industry is and where it is going, you have to understand where it was.

At the height of the housing boom, more homes were being built than what had been averaged for the years before. The number of new homes being built today is higher than at the lowest point but nowhere close to the numbers before the recession. The reason for this is that it takes some time for the excess inventory to be reduced to normal.

Lost Confidence

Another problem is that many people have decided that buying is no longer the best option for them. They have chosen to rent instead as a more affordable choice. It takes some time for people to overcome the fears of home ownership after a recession. Over time, people will develop more confidence and forget about their fears and take the plunge. It may take several years for this to occur, but the housing market will recover gradually.

Another possible reason for the slow growth in the housing market is because more people are looking to alternative solutions. For example. Baby Boomers are downsizing and moving into condos and apartments instead of single-family homes.

Many people in the younger generation is saddled with higher student loans and problems finding a good-salaried, stable income. They can’t afford or qualify for the homes they want. However, once they overcome these issues and are ready to settle down, home ownership will become more appealing.

While the housing market has not rebounded like many had hoped, it is moving in the right direction and should continue to do so going forward. If you are ready to become a homeowner and are looking to buy a house, contact me. I can help you find the right place to call home.