The costs of owning a home can substantially outweigh the benefits because of issues such minimal home equity retention and an owners desire to “flip” a home on the market quickly, researchers Wenli Li and Fang Yang said in their report American Dream or American Obsession? The Economic Benefits and Costs of Homeownership, published Friday by the Federal Reserve Bank of Philadelphia.
“One thing that is certain,” the two analysts said, “is that homeownership is not for everyone, and thus, based on economic benefits, the case for trying to achieve a nation of homeowners needs to be rethought.”
Many borrowers agree with them, especially ones that have never owned a home before. According to a Monthly Survey of Real Estate Market Conditions by Campbell Surveys and Inside Mortgage Finance, first-time homebuyer activity accounted for 39.1% last month, down from a peak of 48.2% in March to the lowest level seen in the past year states Housing Wire.