Is homeownership still your American Dream?

Rent.com 03/09/2010 13:05

In the midst of recent financial chaos, many are wondering: Is homeownership really my American Dream? (©iStockphoto.com/Justin Horrocks)

Traditionally, the American Dream has meant a home to hang your hat, raise your children and grow old together. However, that simple dream has been complicated by speculation and risk-taking during the past half century, which has resulted in an implosion of the housing market.

With 8 million jobs lost since the start of the recession and foreclosure rates at historical highs, many Americans are out of work, have lost their homes or are under water with their mortgages. In the midst of such chaos, even those of us watching from the sidelines and quietly planning for our own futures are forced to wonder: Is homeownership really my American Dream?

It was once a widely held belief that you could count on home prices to appreciate and that real estate was a solid investment. However, it's now clear that this notion can have devastating impacts. With the collapse of the housing market, many Americans are left feeling cynical about home ownership. In a June 2009 survey commissioned by the National Foundation for Credit Counseling, one-third of respondents admitted to the disbelief that they will ever be able to own a home. Furthermore, 42% of those who once purchased a home but no longer own it believe that they'll never be able to afford to buy again.

Perhaps it's time to rethink the American Dream. While there can be advantages to homeownership for many, it may not be for everyone and there are many important factors to consider in the often overlooked rent versus buy decision.

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