FOR YEARS, government policy has aimed at driving up the owner-occupied share of residential housing, on the theory that everyone should have a shot at putting down roots and building up wealth. But judging by the latest numbers, that dream is fading. The national homeownership rate fell from 67.2 percent in the first quarter of 2010 to 66.9 percent in the second quarter, according to the Census Bureau. To put it another way, the recession and its accompanying wave of foreclosures have wiped out the past decade's worth of increases in homeownership. And there's more trouble ahead. According to an estimate from J.P. Morgan analysts, for every house already on the market in the United States, there is another one in or near foreclosure. Some industry forecasts suggest that, by 2012, homeownership rates could retreat to levels last seen in 1960.
Wednesday, August 11, 2010
Decline of the "ownership society"
The percentage of Americans owning their own home continues to decline:
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The term "home ownership" is a farce. So less people have a mortgage, so what?
ReplyDeleteThis is bad for everyone....
ReplyDeleteI disagree. I think this is good for everyone. No pain, no gain.
ReplyDeleteArlington rents up again:
ReplyDeletehttps://www.nvar.com/Portals/1/marketstats/quarterly/2010-q2-totals.pdf
Thankfully, this doesnt say Clarendon rents are going up, or specifically one guy in Clarendon's rents are going up. Therefore we can throw this out as being invalid.
"Arlington rents up again"
ReplyDeleteYes, the area 'inside the beltway' is indeed different from the rest of the nation. Not only will area property values and rents rise in perpetuity, but so will salaries and job opportunities. It is a new era; the rest of the world just hasn't caught on yet. (the world outside the beltway is sooo idiotic!)
Not true, "inside the beltway" is not different from anywhere else. Inland empire CA went down 60% therefore "inside the beltway" will too. In fact, it may just continue to decline in perpetuity.
ReplyDelete"Arlington rents up again:"
ReplyDeleteYeah but who cares? I would bet not a single visitor on this blog actually lives there.
"This is bad for everyone...."
ReplyDeleteExcept the renters!
"I would bet not a single visitor on this blog actually lives there."
ReplyDeleteYou mean other than the guy who lives in Clarendon... and who says since his rent didnt go up, it didnt go up in the rest of Arlington?
You mean other than him right?
Hello Guys!
ReplyDeleteAs long as you have The Federal Government and all its CRAZY OVERSPENDING going on ... Prices of homes and rents will still go up and up!! So, the only thing that will reverse this trending is the laying off of half of the bloated federal work force. This will happen in the next six months to a year. We are going to be forced to live within our means!!
"Yeah but who cares? I would bet not a single visitor on this blog actually lives there."
ReplyDeleteAgreed - the last 2 years of rising prices have beat them into submission.
Homeownership is rewarded by the tax code because in general it's better to have people invested in their communities than not. Of course there are exceptions where certain folks should not or cannot be invested long term in their local communities ... e.g., students, someone just entering the work force and needing to be open to work opportunities, a military family that needs to move to fulfill their committment to the nation ... But it's best for everyone when the average Joe (and average Jane) buy rather then rent. They have a financial stake in the communities in which they live ... and act accordingly. Neighorhoods of owner-occupied homes are cleaner, safer, and of course, more stable ... as it is that 'investment in' that guarantees stability. And that's why the government has a higher homeownership rate as a goal. I guess you could translate that to mean 'everyone should have a shot at putting down roots and building up wealth' ... 'cause with roots (i.e., stability) and wealth comes a greater sense of responsibility and investment in one's local community. One has a stake in it that a renter, free to leave at (almost) any time, only rarely can have.
ReplyDeleteLance, you are reciting philosophy that gained prevalence in the 1950's.
ReplyDeleteThe Earth was flat at one time in history. You know that, right?
Read www.calculatedriskblog.com and look at hard macroeconomic data instead of parroting tired old propaganda.
he Federal Government and all its CRAZY OVERSPENDING going on ... Prices of homes and rents will still go up and up!! So, the only thing that will reverse this trending is the laying off of half of the bloated federal work force.
ReplyDeleteHahahahaha...you are kidding yourself.
For starters, it's not just GSAs who are the pigs at the public trough - it's the vast "private contractor" sector, which is 100% dependent on the gov't for work and tax dollars for revenue.
I'm sorry, but it's true: that's not going away. The folks down in Hampton Roads just found out what Defense Cuts mean - and I'm betting the vaaast majority of those cuts will continue to happen outside the Metro area.
I don't live in Arlington - I split my time between Petworth and the far far Central VA hinterlands. I see, in my micro-sphere, in DC, a 10% YoY decline, in May and in June. I'm a little surprised that it's not more. In the 7/20 print edition of the post, the YTD prices for various neighborhoods were reported - places like Columbia Heights were down 10-20% YoY.
These "MSA" readings are meaningless. There is "rot" inside the district proper (well inside the Beltway). I think it's definitely true that there are parts of the MSA - Arlington for example - which are not going to drop. The recession has almost no impact there.
"You mean other than him right?"
ReplyDeleteNo I mean, not a single poster here lives there. I sure as hell dont. So I find it funny that every single thread on this blog has "arlington" as a retaliation to national numbers.
I dont think its retaliation for national numbers. Most rational people would look at the national numbers and acknowledge they were going down the crapper. Its more retaliation against the doomers that beat it into everyones brains, over and over again, that its not "different" anywhere.
ReplyDeleteFor years, doomers would trot out national or even regional stories of armageddon, bubbleheads would respond with stats showing that Arlington was doing pretty well by comparison and "gasp" may not see a similar fate.
This drove many into a rage - even those who didnt care one whit about Arlington...WHAAAAT! HOW DARE YOU SAY ARLINGTON IS "DIFFERENT"! Just you wait, declines on a biblical scale are coming for Arlington too.
It was always so funny to me that people who dont care about Arlington were so emotionally invested in seeing it suffer a big smack down. I didnt live there either but it was obvious early on that there just wasnt much pain coming for it. Still, it baffled me why some just would not accept the fact that "gee maybe it is different there" and then at the same time be glad they didnt plan on living there and paying the peak or near peak prices.
Most of these guys dont post much here anymore, but given their emotional investment, my guess is they still lurk quite a bit. Thus, the reason you see the Arlington obsession is a simple "I told you so" to the ghosts of this blog's past.
That said, this post in particular showing the arlington rents was in response to the guy in the thread a few days ago who insisted, "my rent at my desirable place in Clarendon didnt go up", (and therefore rents in Arlington arent going up). Perhaps you missed just missed him.
Hey is everyone on this blog a friggin vegetarian? Sounds like it.
ReplyDelete"I dont think its retaliation for national numbers. Most rational people would look at the national numbers and acknowledge they were going down the crapper."
ReplyDeleteSo why post about arlington when the point of this thread is....and I will quote it:
"The percentage of Americans owning their own home continues to decline"
"Hey is everyone on this blog a friggin vegetarian?"
ReplyDeleteYes. Adolph Hitler was a vegetarian, by the way.
Show me your papers, gypsie.
Anonymous said...
ReplyDelete"So why post about arlington when the point of this thread is....and I will quote it:
"The percentage of Americans owning their own home continues to decline"
Because, again, there was someone a week or two who disputed the notion that rents were rising in Arlington (because his rent didnt go up in Clarendon). That chart that showed Arlington rents were rising (the 4th comment in this thread) was just released. So the question is, do I bring it forward to this thread in the hopes the Clarendon guy would see it, or do I bury it in the post in that original conversation where there has been no activity for days?
Secondly, since when on this blog must you only comment on the subject matter? There are comments above that have something to do with vegetarians and Hitler - does that have anything to do with the subject "The percentage of Americans owning their own home continues to decline"?
You might want to try what I do. Since I care neither about vegetarians or Hitler, I just skip over those comments - I dont respond to them at all.
So maybe next time when someone posts on Arlington, Hitler, or otherwise, you just skip over it and not respond - assuming you have the self control to do so.
Just a thought.
"Because, again, there was someone a week or two who disputed the notion that rents were rising in Arlington "
ReplyDeleteI dont see that post in this thread. WTF are you talking about?
Again, its simple...Everytime this blog posts NATIONAL FIGURES, you or some other idiot posts something about Arlington. IT IS WITHOUT FAIL!
Nobody lives there...I bet you even dont!
I strictly limit my meat consumption because I enjoy being physically strong.
ReplyDeleteIt has nothing to do with compassion for animals.
But I do indulge in the (very) occasional juicy steak.
Those who beleive that eating large quantities of meat makes them strong or otherwise imbues them with special powers, are statistically more likely to be obese (and thus: weak)
Straight Edge
I wouldn't be so triumphant about living inside of the "beltway". Look around Arlington and see how high the grass has grown near the county roads. It used to be cut every two weeks. Budget problems caused from a decrease in property taxes due to lower property values is the cause. You fools, the grass doesn't lie!
ReplyDelete"Anonymous said...
ReplyDeleteI dont see that post in this thread. WTF are you talking about?"
Again, here is what I said yesterday, just before your comment:
+++++++++++++++++++++++++++++++++
Because, again, there was someone A WEEK OR TWO [ago] who disputed the notion that rents were rising in Arlington (because his rent didnt go up in Clarendon). That chart that showed Arlington rents were rising (the 4th comment in this thread) was just released. So the question is, DO I BRING IT FORWARD TO THIS THREAD in the hopes the Clarendon guy would see it, or do I bury it in the post in that original conversation where there has been no activity for days?
++++++++++++++++++++++++++++++++++
This thread started on August 11. Yesterday was August 14. Is the time between August 11 and August 14 "a week or two"?
"Anon said...
Again, its simple...Everytime this blog posts NATIONAL FIGURES, you or some other idiot posts something about Arlington. IT IS WITHOUT FAIL!"
You know, originally I posted this for the benefit of the guy in clarendon who said his rents were going up. However, now that I see how little self control you have, I have to wonder if you are one of those "Arlington will be a bloodbath" types from years ago.
Either way, I find this terribly amusing. Even now, after all these years all I have to do is type the word "Arlington" and it causes some people (like you who doesnt even live there) to feel compelled, almost instinctually, to respond. Very Pavlovian dont you think? :)
Agree with nonpartisan's comment - "no pain, no gain." There is so much going on right now in light of the real estate markets and foreclosures that the percent of Americans owning homes is obviously going down but then again thats the name of the game. Have seen this again and again over history and they will in the future turn more upwards once again. Always interesting to see others points of view of such topics.
ReplyDeleteI don't think it's a bad thing that people are renting. At least they're not creating more toxic assets for the government to deal with, right?
ReplyDelete"You know, originally I posted this for the benefit of the guy in clarendon who said his rents were going up."
ReplyDeleteOk, but could you at least do it on the thread or blog that guy actually posted in? This thread WAS about "the decline of ownership society in the US"
That would probably help out the rest of us who dont give a crap about that guys rent. toodeloo!
I wouldn't be so triumphant about living inside of the "beltway". Look around Arlington and see how high the grass has grown near the county roads. It used to be cut every two weeks. Budget problems caused from a decrease in property taxes due to lower property values is the cause. You fools, the grass doesn't lie!
ReplyDeleteWho cares about some guys rent, or how high the grass is in a 3 square mile area when the entire country is sinking into the an abyss of declining value.
ReplyDeleteEven arlington wont be worth much when our country becomes a banana republic. Can we get back on topic?
"Anon said...
ReplyDeleteOk, but could you at least do it on the thread or blog that guy actually posted in? This thread WAS about "the decline of ownership society in the US"
Respectfully, no. This was the entire issue to begin with anon. Clarendon guy's assertion came a few weeks ago. Do you check back on weeks old threads to see if there are any more new responses to you? If so, how far back to you go? After all, maybe there is an old comment of yours dated March 11, 2009 and someone is right now launching into multi comment diatribe about how you are an idiot - will you ever see it? Do you even care?
So again, that is the reason I posted it here instead of that original thread that is now dormant. Its a shame old threads cannot be "topped" but thats not how Blogger works.
BTW, this lack of reading comprehension is likely one of the reasons why people feel like Arlington dominates the conversation. This back and forth between you and I is now on its 10th comment. This has also generated another 5 Arlington comments from the peanut gallery. Imagine how different this thread would look like if you read what I wrote originally - or in the alternative if you just exercised a little self control and didnt respond to the posting of Arlington rents.
Even arlington wont be worth much when our country becomes a banana republic. Can we get back on topic?
ReplyDeleteNah, actually in 40 years time there'll be the walled city of Washington (the wall being built roughly where the Beltway is now), and the peasants toiling on the land outside the walled city.
In Arlington, Alexandria, and DC proper, we'll wear white tunics and feast on grapes. We'll get our produce from stalls you guys set up outside the gates.
"Respectfully, no."
ReplyDeleteOK. You post too long, so I dont really read it. I was just asking, I dont really care that much...its just kind of annoying to people that dont even live there.
its just kind of annoying to people that dont even live there.
ReplyDeleteAgreed! So, next time either read more carefully, or just ignore it like you do the hitler and vegetarian posts.
I love grapes!
ReplyDeleteIt is GOOD for purchasers now, because they dont have to pay any Rediculos price now
ReplyDeleteThere are various methods to determine the price of housing. Can said mortgager make the payment is the first to be considred. Riverside County Ca was previously mentioned. The professions of those in Riverside County are heavaily related to the construction industry either directly or indirectly.
ReplyDeleteWhereas, in Arlington professions are directly or indirectly related many bureaucrats running the Government. Suppose by some far fetched concept of living within our means catches hold and the salaries of said bureacrats are diminished or less are needed. Arlington will slip into alignment with real estate prices nationwide.