Homeownership Remains the American Dream, Despite Challenges
A new survey found that nearly three-quarters of Americans rank owning a home above career, family, and college as a sign of prosperity.
However, the survey also found that many people are struggling to afford to buy a home, with affordability factors such as income level, soaring housing prices, and the ability to make a down payment cited as major challenges.
Despite the challenges, a majority of homeowners in the survey were satisfied with their choice: Seventy-two percent said they would buy their current home again.
The survey also found that younger Americans are more willing to make compromises to find more affordable housing, such as moving to another state, buying a fixer-upper, or moving to a less desirable area.
Key takeaways:
74% of Americans rank owning a home above career, family, and college as a sign of prosperity.
58% of all respondents said they would be willing to make compromises to find more affordable housing.
72% of homeowners said they would buy their current home again.
Younger Americans are more willing to make compromises than older Americans.
Bullet points:
The United States housing market faces several challenges, including low inventory and high prices. As a result, many families are considering multi-family living arrangements to save money or generate income.
Two main types of multi-family living exist accessory dwelling units (ADUs) and two-family properties. ADUs are smaller units attached to or detached from a single-family home. They are often used to house family members or to generate rental income. On the other hand, two-family properties are larger units divided into two separate apartments.
There are several factors to consider when deciding whether to create an ADU or a two-family property. These include zoning regulations, the size of your property, and your personal needs. Suppose you are considering starting a multi-family living arrangement. In that case, doing your research and consulting with a qualified professional is essential.
Benefits of Multi-Family Living
There are several benefits to multi-family living. These include:
Saving money: ADUs and two-family properties can be a way to save money on housing costs. If you create an ADU, you can rent it to generate income. If you make a two-family property, you can live in one unit and rent out the other unit.
Generating income: ADUs and two-family properties can be a way to generate revenue. If you rent out an ADU or a two-family property, you can earn a monthly income to help you pay your mortgage or other expenses.
Flexibility: ADUs and two-family properties can provide flexibility. If you have an ADU, you can use it to house family members, guests, or renters. If you have a two-family property, you can live in one unit and rent out the other unit. This can allow you to move or change your living situation as needed.
Drawbacks of Multi-Family Living
There are also some drawbacks to multi-family living. These include:
Zoning regulations: Zoning regulations may restrict the types of multi-family living arrangements allowed in your area. You should check with your local zoning office to see what is permitted.
Maintenance: ADUs and two-family properties can require more maintenance than single-family homes. You must be prepared to handle repairs and maintenance on both units.
Privacy: ADUs and two-family properties can impact your privacy. If you have an ADU, you will have neighbors living close by. If you have a two-family property, you will have tenants living in your home.
Conclusion
Multi-family living can be a good option for families looking to save money, generate income, or have more flexibility. However, weighing the good and the bad before deciding is crucial. If you are considering multi-family living, it is essential to do your research and consult with a qualified professional.
Homeownership as a vital part of the American Dream can be traced back to the early 19th century when Thomas Jefferson and other Founding Fathers promoted the concept of property ownership to ensure individual liberty and economic security. However, it was in the early 20th century that homeownership became a national goal.
In 1934, the Federal Housing Administration (FHA) was created to provide mortgage insurance to lenders, making it easier for people to buy homes. The FHA also set construction and lending standards, which helped improve the quality of housing in the United States.
In the years following World War II, the federal government continued to promote homeownership through programs like the GI Bill, which provided home loans to veterans. As a result, the homeownership rate in the United States rose from 44% in 1940 to 64% in 1960.
By the 1960s, homeownership had become a central part of the American Dream. It was seen as a way to achieve financial security, build wealth, and pass on a legacy to one's children.
In recent years, the homeownership rate in the United States has declined. Still, it remains a crucial part of the American Dream for many people. A 2020 survey by Bankrate found that 74% of Americans believe owning a home is an essential part of the American Dream.
Here are some of the reasons why homeownership is seen as such an essential part of the American Dream:
Of course, homeownership has its challenges. It can be expensive, and it can be a lot of work to maintain a home. However, for many people, the benefits of homeownership outweigh the challenges.
Key events in the history of homeownership in the United States
Many people want to know how long their appraisal will be accurate or valid? While there is no specific answer that you will see across the board I can point out a few details that may help you find a safe answer.
Let’s start off technically speaking - The appraisal valuation is as of the day of the inspection and typically will be good for 3-6 months barring extenuating circumstances. But what are extenuating circumstances?
The appraiser comes out and looks at the home but the next day there is a fire and half the house is gone. Or maybe a week after the appraisal inspection was completed a tornado hits town and there are some small damages to the home. Sure the home may not be completely gone or there may only be small issues but the appraisal no longer reflects what the appraiser saw the day of inspection. Anytime there are major improvements/renovations or major damages to the property this could affect the appraised value.
Aside from weather related issues there could be issues like a business in town shuts down flooding the market with homes for sale or a new plant is being built that expands job opportunities and restricts inventory. There could be new building or new sales of surrounding properties that would affect the appraised price. When writing up the appraisal and finding information to back up their valuation appraisers have to find comparables of the home - and these are typically sold within the last 3-6 months.
Now, there are certainly areas that are more stable and settled in terms of weather, sales and building, or a more stable job market. The appraised valuation in an area without much development or weather hazards most likely would be stable for anywhere from 3 to 6 months. Some may be accurate for market conditions a little less or a little longer depending on the area and extenuating circumstances.
Why is it such a short time? If you are purchasing or refinancing, Lenders want the most up to date data that they can get to make sure they are making sound investments, and you want everything to be up to date so you can have the best deal. In general the newer the information the better and more realistic an estimate you will receive. If you have specific questions about your appraisal and if it is still up to date we are happy to help. If your appraisal needs to be updated we can provide that for you as well. Please email us at appraising@hotmail.com or call our office at 302-745-1790.
If you are wondering how to become an appraiser it can sometimes seem like a daunting task - but fear not, it can be broken down into 3 simple steps. With that being said there can sometimes be a 4th step but it really depends on where you are looking to work and that is obtaining a college degree. It will vary from state to state so do a little research and go from there.
Step 1: Become an Appraisal Trainee
Complete any qualifying course work and then get your trainee license. There is 75 hours of basic appraisal training that will be needed. These include Basic appraisal principle and a few other basics classes.
Step 2: Gain Experience
You have to work under a certified appraiser to gain time and knowledge in the field. You will be supervised as it is a requirement before moving to a high level of certification.
Step 3: Upgrade Your License
Once you have completed your training and supervised hours you can choose to apply for the following - Licensed Appraiser, Certified Residential Appraiser or Certified General Appraiser. These each come with their own requirements for college level course requirements.
There is no right or wrong way of moving along the pathway, nor is there anything wrong with stopping when you have found your place in the world of appraisals. We are each unique and need different levels of work and knowledge to feel fulfilled and because of that we get to choose where we land.
Families in the United States are experiencing a housing market squeeze caused by historically low inventory and high prices. Many families are navigating this changing market by considering multi family living situations that might not have been on the radar just a few years ago. Whether it is family members moving in to provide financial relief and support, or families creating rental income by adding or renovating spaces to host separate families, the trend of multi-family living is gaining ground in the mainstream consciousness like never before. Before you jump in and convert that garage to an in-law suite there is much to consider.
An important first step is to consider whether you are creating an accessory dwelling unit or a two-family property. In most municipalities an accessory dwelling unit is permitted for the purpose of providing housing for an additional family member. In some municipalities, renting this space in any way would be prohibited, while other areas have more lax regulations. It's important to thoroughly research your area's regulations before moving forward with construction plans to avoid any expensive surprises. Often your local planning and zoning office can provide specific guidance in this area. An accessory dwelling unit is more likely to have the following attributes according to a McKissock’s 2022 article:
Alternately a two-family property is often created for the purpose of providing additional income to the primary resident. There can be very specific regulations regarding two-family properties and whether they are permitted at all, whether short term rentals are allowed, how many occupants are permitted and how the utilities for the property must be planned and monitored. According the same 2022 article a property is likely to be considered a two-family property if:
It is correct to assume that adding additional living space to your property will certainly raise the value of the property no matter what type of additional dwelling is created. However, the creation of a two-family property where it is legally permitted has much greater potential to both add value to the property and create revenue for the primary property residents.