December 18 2010 (Jeff Alan)
Fannie Mae released the second installment of its 2010 Own-Rent Analysis, with highlights of the last two of the report’s four major themes. Part Two’s highlights explore attitudes and behaviors toward homeownership among ethnic groups and immigrants and the economics of owning and renting over time and by geographic region.
According to the study, all racial and ethnic groups polled, as well as immigrants, strongly aspire to own a home, despite current disparities in homeownership rates for these groups. Additionally, if personal finances improve for these groups as they continue to grow in number, homeownership rate disparities may not persist.
The study also found that if homeownership rates by race and ethnicity remained constant at 2009 levels, projected homeownership would decline fairly steadily until 2050.
In addition, the economic climate and health of the housing market of a region appears to have a minimal impact on the desire for homeownership among residents of different cities. The findings show that minorities and immigrants aspire to own in the long term and that homeownership could rise among immigrants and minorities in the future. The study also shows that homeownership rates and housing attitudes are similar in cities with differing housing histories.
Doug Duncan, Fannie Mae Vice President and Chief Economist said, “Our study gives us reason to believe that the homeownership rates for ethnic groups and immigrants will be higher than indicated solely by the projected growth of the racial and demographic population. We routinely conduct research like this to help us better understand the views of homeowners and renters across specific demographics so that we can provide the best support possible for the market.”
The Fannie Mae 2010 Own-Rent Analysis is based on extensive primary research with homeowners and renters (including focus groups and a quantitative survey), U.S. Census Bureau data, and micro- and macro- economic parameters, and explores the factors influencing consumers’ decisions to buy or rent a home. The analysis compares current consumer actions, attitudes, and financial considerations with historical consumer behaviors, market experience, and economic conditions. The results of the study were published in a series of themed reports that cut the data across consumer life stage; ethnicity/race/immigration status; and demographic, geographic, housing, and economic status.
The reports are available on www.fanniemae.com.
Tags: fannie mae, homeowners, homeownership, housing crisis, owning versus renting, renters