uploads///cdeaadadedeff

Despite a Tough Time, Homeownership Remains the American Dream

By

Jan. 26 2016, Updated 4:33 p.m. ET

The US housing market has had a roller coaster ride

The founder and chairman of CityView and former Housing and Urban Development Secretary Henry Cisneros spoke on Wall Street Week earlier this month about the housing market and its future.

[marketrealist-chart id=998077]

The US housing market collapse of 2008–09 deeply impacted the US and world (ACWI) (VT) economies. The financial sector (XLF) fell along with real estate (IYR) (VNQ). Banks that give out mortgage loans, like Bank of America (BAC), Citigroup (C), and JPMorgan Chase (JPM), saw their prices slump.

The housing market has, since then, recovered—albeit slowly. The financial sector has also grappled with the strengthening dollar and low interest rates.

Article continues below advertisement

Yet home ownership remains “the American dream”

Despite the roller coaster ride that the US housing market has taken over the past decade, Henry Cisneros believes owning a home is still “the American dream.” He supports his view by citing polls that suggest that even Millennials—people who reached young adulthood around 2000 and who tend to delay home purchases—have expressed their desire to own a home over the long term.

Real estate is a long-term investment. Cisneros believes that not only is homeownership the American dream, but it’s also “good economics” over the long term. “For most Americans, their net worth is the sum total of the equity they have in their home,” he says.

The housing market as an instrument

Traditionally, the housing market has helped people move into the middle class. However, the social situation is changing. We’re seeing people buy houses later and job mobility delaying homebuying decisions to some extent.

These are also reasons why we’re seeing more renters than homebuyers, even with ultra-low interest rates. Let’s see how real estate magnates Barbara Corcoran and Henry Cisneros feel about the changing trend towards renting versus buying in the US real estate market.

Advertisement

More From Market Realist

  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • Woman working on a laptop
    Macroeconomic Analysis
    Why NOBL ETF Could Offer Upside Potential in 2021
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.