Strong Homeowner Preferences Among U.S. Voters
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In my economic forecast presentations this year one of the mega themes is that people that graduated from a technical school, college or university in the past three years or the coming three years will be more pre-disposed to be renters than home owners. Literally, they may be a generation of renters.
While that appears to be the case, a survey by the National Association of Homebuilders from January 2-5 of 1,500 finds three of every four likely voters (including renters and owners) find it appropriate for tax incentives fostering homeownership. Agreeing with the concept that tax incentives for homeownership is positive and appropriate in the survey were 84 percent of Democrats and 71 percent of Independents and Republicans.
• 72 percent believe it is a good time to buy a home (while only 46 percent agree it is a good time to buy a new car)
• While 37 percent believe that an IRA or 401K is their best investment, 33 percent believe their home is the best (contrasted to 9 percent on savings accounts and 7 percent on stock market investments)
• 74 percent Agee or Strongly Agree that owning a home is worth the ups and downs of the housing market
• 96 percent of homeowners are either Happy or Very Happy with their decision to own a home (85 percent being Very Happy) while just 3 percent are Unhappy (and recall that 23 percent of current homeowners are underwater—so that is a very powerful statistic)
• 79 percent (8 out of 10) homeowners would advise a close friend or family member just starting out to buy a home.
• Only 27 percent of renters rent as a matter of choice yet 68 percent of renters say it is a goal to own a home
• 60 percent either Agree or Strongly Agree that dealing with the mortgage and foreclosure crisis is the key to stabilizing the economy (once again confirming that housing typically brings the economy out of a recession)
• The dissatisfaction of politicians is seen in the findings that 58 percent believe that neither Democrats or Republicans are doing a good job of stabilizing and restoring the housing market
• 75 percent agree that the mortgage interest deduction is appropriate and reasonable (while just 20 percent deem it Not a Good Idea)
• 73 percent oppose eliminating the mortgage interest deduction
• 68 percent of the respondents indicated they would be less likely to vote for a Congressional candidate that proposed eliminating the mortgage interest deduction
• 66 percent favor lowering Federal income tax rates for individuals