The Good Life

As part of their Q4 2020 National Housing Survey, Fannie Mae reports that 75% of respondents indicated that homes are a “safe” investment, ranking in safety just slightly below a savings/money market account. Additionally, 73% of consumers felt that investing in a home has “a lot of potential” – by comparison, 63% of consumers believe that stocks have “a lot of potential.” “When comparing homeownership to other investments, consumers may be factoring in the rent they may otherwise have to pay, and for some consumers the tax benefits of owning a home remain meaningful,” the report continues. Fannie Mae said that consumers remain focused on the long-term potential of housing. In fact, 85% of consumers in the survey believe homeownership leads to wealth-building and better financial health, numbers that have been consistent over time.

Consumers also value homeownership for non-monetary reasons, with emotional and tangible aspects perhaps contributing to the opinion that owning a home is an investment with “a lot of potential.” Generally speaking, this is something that other investments (e.g., stocks, bonds) or renting may not provide. 90% of consumers say owning a home “gives a sense of privacy and security;” and 89% say it allows for “a good place to raise your family,” compared to renting a home. Owning a home is also considered by most to be part of “the good life,” with survey data showing that 87% of consumers report that owning a home is important for “the good life.” For context, other items ranking higher on “the good life” list included health, financial security, preferred living location, and work/life balance.

Source: Scotsman Guide