The dream of home ownership in the U.S. is going away

Best Growth Stock -Construction companies in the U.S. departments have more work than ever these days, as demand for homes to rent soars away as the traditional American dream of homeownership.

The Commerce Department said Tuesday that housing starts for homes fell 1.5 percent in July to a seasonally adjusted 604,000 units. In contrast, multifamily housing starts, which are usually intended for rent rose 7.8 percent to a total of 179,000.

The latter increase reflects a new trend, which increases the number of people who lease fall while the number of owners.

The percentage of Americans who have their own home fell to 65.9 percent in the second quarter, reaching its lowest level since the first quarter of 1998. This ratio hit a high of 69.2 percent in late 2004, when lax lending standards to encourage home sales.

And this change seems to be picking up speed.

“Even in cases where it would make sense from a financial point of view, or where it would be cheaper on a monthly basis to buy a house to rent, many people are making this purchase,” said Oliver Chang, head of Morgan Stanley’s real estate strategy.

“The trend that we’re going to continue,” he said.

People owning rate could be even lower than the figures from the Census Bureau, according to Chang and his team of analysts.

The rate is only 59.2 percent once discounted mortgage defaults, which the government does, according to a report that Chang wrote with other experts.

OWNER TO TENANT

“The combination of falls in house prices, a mortgage constant limited and settlements, together with better options to lease, are changing the American way of life,” according to the report from Morgan Stanley.

“We believe this change is just beginning and is moving the country towards a lessee,” the report said.

Americans are beginning to look askance at the idea of ​​home ownership, as has been tightened access to credit following the bursting of the housing bubble.

A growing number of people have had to go to rent. This has reduced the rate of vacant flats, which fell to 5.9 percent in the second quarter, the lowest since 2006, according to the real estate firm Reis Inc.

Some tenants have no choice. In 2010 there were 3.8 million home foreclosures and the number could soar to 6 million by 2013, according to research firm RealtyTrac.

However, some analysts argue that leasing can be a good alternative.

“The house may actually be a very risky investment if you look at the slope. We should talk about the possibility of leasing as a very respectable,” said Dean Baker, a director of the Center for Economic Research and Policy.

The White House, for example, want to rent, sell or dispose topped houses held by mortgage giants Fannie Mae and Freddie Mac

The idea is to “bring stability and liquidity,” the housing market, explained the acting director of the Federal Agency for Real Estate Finance, Edward DeMarco.

LOOKING FOR A NEW MODEL

President Barack Obama seeks to change the way in which funds access to housing. Your Government published a preliminary report in February with three proposals, which aim to reduce the public role in the mortgage market and attract private investors.

The White House said in your project that your goal is to “ensure that Americans have access to an adequate range of options for accessing a home.”

However, the Government said that “this does not mean that our goal is that all Americans are homeowners.” The paper noted that 100 million Americans are tenants, either by choice or necessity.

Currently, Fannie Mae and Freddie Mac, along with the Federal Housing Authority guarantee about 90 percent of all mortgages in the country.

A recent survey of Fannie Mae shows that more people will choose to rent rather than buy.

“Dissatisfaction with the direction of the economy and fears about employment are reducing demand to buy homes and slowing the recovery,” said Fannie Mae’s chief economist, Doug Duncan, a quarterly survey.

“People who believe that having a home is better than renting, however, is planning to hire at least until things get better,” he said.

However, sometime in the future the dream of homeownership come alive again.

A recent study by the Pew Research Center among 2142 adults found that more Americans would prefer to own if they had the means.

Only 24 percent of renters said they did so by choice rather than necessity, while 81 percent felt that having a home is the best long term investment for their families.