American Home Ownership at its Lowest Ebb Since Great Depression
More bad news has hit the American homeowners agenda as it was revealed that home ownership has dropped to the lowest point in decades, down to 65.1 percent. That’s the lowest since the Great Depression.
With millions out of work and no end in sight to the economic turmoil around the globe, the people of America are in major trouble and are now finding it easier and more affordable to rent. It’s due to several factors. The banks aren’t lending and credit overall is next to impossible to get. People can’t afford the downpayments and on top of that the amount many people pay regarding health insurance and land taxes would be too much in the economic climate.
Families are instead moving in together or they’re renting. They are combining many strategies to avoid from being left out on the streets. Banks are in trouble because they’re under pressure to get the houses occupied so that they don’t have to pay for the upkeep and fines.
The battle is on for government and citizens and banks to come to some sort of an agreement that gets people in those homes and makes it affordable. Foreclosures are expected soon again to the level of millions of people. At present there are unprecedented street protests that has the bankers and real estate companies on edge. Not having these homes occupied and owned by responsible persons means liabilities the companies and society as a whole can’t keep up.
There is some hope in that perhaps jobs will come back to the U.S., but that depends as well on many other factors. The cost of homes has dropped drastically and that’s the irony. Prices haven’t been this low in over ten years. Some homes that are depressed in value are too tempting to let go but if you don’t have the credit and cash they go either unoccupied or rented.
It’s going to take a major overhaul and changes of unprecedented levels to solve this crisis and it had better be done soon.
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