Home ownership remains a big part of the American Dream
Published On Jan 25, 2025, 7:00 AM
A recent survey from Realtor.com indicates that 75% of American adults still consider homeownership a vital part of the American Dream, with homeownership rates currently at 65.6%. The sentiments vary slightly across generations, with Baby Boomers showing the strongest belief at 84%. Many view homeownership as essential for long-term wealth, especially among millennials (53%) and Gen Z (52%). Despite challenges in affordability, a significant portion of the population remains optimistic about their ability to buy homes.
Stock Forecasts
XHB
Positive
The consistent belief in homeownership as integral to wealth creation and the American Dream suggests strong continuing demand in the housing market. Despite rising prices and mortgage rates, this could sustain the real estate sector's growth, particularly among companies focused on home construction and real estate investments.
ITB
Negative
While the positive sentiment around homeownership remains strong, rising mortgage rates (currently averaging 7.04% for a 30-year fixed mortgage) could dampen buyer activity and slow down the housing market, affecting real estate stocks in the short term.
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