More Homeowners Mean More Stable Communities

Published by nora | Filed under Buyer / Seller Tips, Communities, Market Trends, Miscellaneous, Real Estate

If you’re buying a home, you’re not only giving your family a more comfortable and stable life, you’re also contributing to the stability of your community.

Studies cited by the National Association of Realtors in its latest report on homeownership found that homeownership results in the stability of families and communities. Compared to renters, homeowners:

• Are more active in community activities
• Have higher levels of self-esteem
• Experience higher levels of happiness
• Are able to take advantage of education opportunities
• Develop social ties that allows them to access opportunities not available if they are    frequently moving
• Feel comfortable and secure as they build their lives together with their children in  familiar surroundings

Why are these so? All studies carried out by business, government and academic organizations on the relationship of homeownership and community stability point to the embedding of homeowners in communities. For instance, homeowners are more likely to participate in local elections and public meetings compared to renters. They also are more likely to join voluntary associations, fundraising drives and faith organizations.

The studies also found that the percentage of teenagers who stay in school is higher for families that own their homes compared to families that rent. Children’s academic achievements are also enhanced if families do not frequently move. Additionally, neighborhoods with high percentages of homeowners have stronger clout and thereby have the ability to demand better educational facilities and resources.

Homeowners also spend time and money to maintain and improve their homes. With residential properties always in good condition, property values are maintained and overall community quality is preserved.

Levels of crime are also reduced in neighborhoods full of homeowners. In these communities, neighbors know each other and are more likely to recognize perpetrators. Homeowners are also more willing to volunteer for crime prevention programs. In areas dominated by renters, the level of volunteering or community participation is low as people are hindered by the thought that they will soon move again.

Based on data from the U.S. Census Bureau, the homeownership rate nationwide in the second quarter of 2010 was 66.9 percent, the same as the rate in the last quarter of 1999. Since the second quarter of 2004 when the national rate reached its peak of 69.2 percent, the rate has been dropping.

The state with the highest homeownership rate in the second quarter was West Virginia, with 78.7 percent. In the first quarter of 2005, West Virginia also topped other states in homeownership rate, with 82.4 percent. The states that rounded up the top five were South Carolina, New Hampshire, Michigan and Delaware.

At the bottom of the chart was Washington, D.C., with 44.7 percent, the lowest homeownership rate. New York State, Hawaii, California, Nevada and Rhode Island rounded up the five states with the lowest homeownership rates during the quarter.

Among the largest metro areas in the country, Akron, Ohio had the highest rate of homeownership, with a rate of 80.6 percent. Columbia in South Carolina, Grand Rapids in Michigan and Birmingham in Alabama rounded up the top four in homeownership.