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Why Americans have lost interest in buying homes

On Behalf of | Sep 20, 2017 | Residential Real Estate

The U.S. home ownership rate is currently at 63.7, which is one of the lowest numbers in American history. It has become increasingly common for Delaware residents and others to rent instead of buy. According to a survey of 2,000 Americans, 71 percent said that this was because the process of buying a home was too complex. In some cases, getting a mortgage can take about a month whereas the process of renting a home or apartment may only take days.

Of those surveyed, 70 percent said that it was too hard to come up with a down payment. Many believed that they wouldn’t be able to afford one until their late 30s. However, it may be possible to use an FHA loan that comes with a down payment of just 3.5 percent instead of the standard 20 percent. The average down payment for a first-time buyer is just 6 percent.

For some, buying a home restricts the flexibility that they have in their lives. Many younger people would rather spend money on experiences such as traveling as opposed to owning a home. Americans also tend to appreciate being able to change jobs every few years, which makes renting more attractive than buying a home. On average, a person will have 12 jobs in his or her career according to the Bureau of Labor Statistics.

As buying a home may be a complex process, it may be a good idea to have help completing it. Legal counsel may help an individual understand contract terms or sit in during a real estate closing to answer any questions a buyer may have.