Even though mortgage loan rates are at historic lows, the housing industry still isn't seeing the numbers it wants. The lack of consumer optimism and interest in purchasing a home and taking part in the American dream no longer seems to be the case or a possibility.
This morning in the MBA NewsLink it states that the Rental 'Housing Wave' is coming. David Brickman, senior vice president of multifamily with Freddie Mac, predicts a "wave" of rental housing influences by changes in demographics and consumer attitudes toward renting. In a blog published yesterday, Brickman said the apartment market has become the house industry's and the broader economy's "poster child" for good news and optimism.
"It's an exciting time to be in this growing sector where it is projected that $1 trillion in capital and 10 million additional apartment units are needed in the next 10 years as more individual turn to apartment living," Brickman said.
The U.S. homeownership rate continues to drop; in the second quarter, the rate was 65.9 percent, the lowest rate since 1998. The sharpest decline has been for household heads under 30 years of age. Renters now make up more than 40 million households, or nearly one-third of U.S. households. For every 1 percent that the current homeownership level of 66 percent decreases, one million individuals become renters.
What is happening to the "American Dream"? Many people think of the American Dream has the possibility and goal of prosperity and success. The picture of the big white house with a picket fence, two kids, a dog and a car that was so often portrayed in the early 1950's is no longer the case, or to some extent. We have seen a new face of America as things have become a struggle and Americans are creating a dream that works for them.