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By Real Estate Advisor
Several studies have evaluated the impact of the rising U.S. home ownership rate on American’s society. Besides boosting the economy (in 2005 alone, 16 % of total economic activity was from the housing sector), home ownership also provides other social benefits. A study conducted by the National Association of Realtors (NAR) found that home ownership positively impacts the U.S. society in at least five areas: social stability, educational achievement, civic participation, crime rates and participation in public assistance.
1. Promotes Social Stability: Homeownership has been found to contribute towards social stability. Since homeowners have greater financial stake in their neighborhoods, they typically remain in their homes for a longer period than renters, thus indirectly contributing to the stability to their neighborhoods. When compared to homeowners, renters are five times more likely to move.
The U.S. Census Bureau found that even between a homeowner and a renter of equal age, income and marital status, the renter is more likely to move out of his/her residence in a given year than a homeowner. Residential stability has been found to indirectly strengthen local social ties. The NAR Research concludes that homeownership does bring positive social outcomes with respect to housing stability or less frequent change of residence.
2. Improves Educational Achievement: NAR Research reveals that homeownership has a significant positive impact on educational achievement of children. Although it is difficult to point at one particular factor as the reason for better educational outcomes, many studies indicate homeownership as having a positive effect on the educational outcome of children.
3. Increases Civil Participation: Many studies reveal that homeowners have greater community involvement than renters. They are more politically active, participate in elections more frequently, and have greater awareness of the political process when compared to renters. Church attendance and membership in voluntary organizations were also found to be higher among homeowners.
4. Contributes Toward Lower Crime Rates: Homeownership and a stable housing helps contribute toward lowering crime rates. Homeowners have a greater financial stake than do renters especially in the case of property crimes or other crimes in their neighborhood. Hence, homeowners have more reason to prevent crime by working with the society and participating in crime prevention programs. The research also states that homeowners are less likely to become crime victims.
5. Lowers Dependency on Public Assistance: Homeownership and stable housing in a stable neighborhood brought down the rate of teenage pregnancy consecutively reducing the use of public assistance. Another research points out that homeowners are able to cope better after being laid off from their jobs because they can access their home equity credit lines rather than turn to public assistance.
Thus, besides improving the homeowner’s financial status, increased homeownership brings in these numerous benefits to the American society.
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Source: isnare.com
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