In a poll released this week, nearly one in five Americans say they don't think owning a home is worth the risk in today's uncertain economy.
The poll, conducted by the National Foundation for Credit Counseling [1] (NFCC), shows 18 percent of respondents are not willing to assume the risks and obligations associated with taking out a mortgage loan.
NFCC says the findings are consistent with the Census Bureau's latest household data showing a national homeownership rate [2] of 64.8 percent in the first quarter—a 19-year low.
"The housing crisis, recession and continued economic instability appear to have shaken the confidence of many Americans, particularly when it comes to big-ticket items such as a house," said NFCC spokesperson Gail Cunningham.
Indeed, while Americans have been generally optimistic about housing [3]—with 82 percent in NFCC's survey insisting "owning a home remains a critical part of wealth building"—banks are reporting weakening demand for loans [4], owing in part to tighter lending criteria and consumers’ doubts as to whether they can qualify.
Meanwhile, Cunningham notes "the unwillingness to take on a mortgage loan may be a smart decision for some, as many borrowers have learned the hard way that homeownership does not come with a guarantee of continually increasing equity."
With so many Americans still listing homeownership as a future goal, NFCC suggests most would be better off renting until they're fully prepared to take on all of the associated responsibilities, including paying a mortgage, home and lawn maintenance, and taxes and insurance.
"Homeownership is about much more than buying a home," the group said in a release [5]. "Renting until they are in a position to buy can help a person avoid a costly mistake, including the negative ramifications of foreclosure."