Parry Custom Homes Blog

Blog Archive for August, 2016

Why having student debt might not hinder your homeownership

Categories: Buying a Home, Custom Home in Pittsburgh, Pittsburgh custom homes | Posted: August 19, 2016 | Comments Off on Why having student debt might not hinder your homeownership

 

Home ownership data

Home ownership data

According to recent data from Fannie Mae, potential home buyers with student loans who received a bachelor’s degree or higher level of education, are 27 percent more likely to become homeowners than those who are high school graduates and didn’t attend college. Parry Custom Homes, a premier homebuilder for Pittsburgh custom homes, shares the findings in why having student debt might not be as big of a hindrance as you previously thought.

According to the Federal Reserve, total student debt in the U.S. has more than tripled in the last decade. In April, the number was $1.3 trillion in student debt. The U.S. homeownership rate is near a 48-year low at 63.5 percent, according to the Commerce Department’s report for the first three months of this year.

In Fannie Mae’s National Housing Survey recent data report, potential homebuyers with student loans who have a bachelor’s degree or higher level of education, are 27 percent more likely to be homeowners than those who didn’t attend college after high school.

The issue of student debt is likely to affect the homeownership rates of certain groups of people more than others. An example of this would be for people who completed at least a bachelor’s degree without student debt were 43 percent more likely to be homeowners than high school graduates who didn’t attend college and have no student debt.

The report still shows that while student debt may delay homeownership, it doesn’t eliminate the idea all together. Renters between the ages of 22 to 44 were 28 percent less likely to buy rather than rent their next home compared to those without student loans.

While graduating debt-free makes owning a home easier, economists across the board agree over the importance of a college degree when it comes to unemployment and income levels.

 

 

 

Parry Custom Homes is an established homebuilder in the Pittsburgh area.  Call or contact us today for more information.

 

Most Americans still desire to own a home

Categories: Custom Home Builders in Pittsburgh, Custom Home in Pittsburgh, Homeowner News, On Your Lot Builder Pittsburgh | Posted: August 12, 2016 | Comments Off on Most Americans still desire to own a home

 

Owning a home

Owning a home

Even though it seems as if multi-family homes and apartments are going up everywhere around you, Americans still want to own homes — if they can afford to. That’s the finding of a report released by the Harvard University Joint Center for Housing Studies. Even though multi-family housing seems to be on the rise in so many new developments and up and coming areas, owning a home is still the goal of most as long as they can afford the monthly payments and upkeep. Parry Custom Homes, a premier Pittsburgh on your lot builder, shares why owning a home is still on the wish list of most Americans who don’t already own one.

The pressures of student debt, rising rents and the leftover wreckage from the nearly decade-old housing bust have restrained people’s ability to buy, even though the dream remains alive. The recent report sees reasons for both optimism, as more millennials are poised to leave the nest as well as concern with arising numbers of renters facing extreme costs.

Those factors could determine whether the share of Americans who are renting keeps rising or whether the nation’s homeownership rate can rebound from a near 48-year low of 63.5 percent.

Here are other major trends documented in the report:

More household formation:

Americans formed 1.3 million new households in 2015, a return to normal pace of growth. Much of last year’s increase reflected an aging population in which more households consist of adults older than 65. But the Harvard analysis says the increase in households should continue because of the influx of millennials, which it defines as those born between 1985 and 2004.

Millennial household formation is expected to average more than 2 million annually over the next several years, a surge that will likely further raise demand for rental units.

Larger houses, smaller apartments:

Some people might love those tiny houses, but most yearn for extra space. The median size of a newly built single-family house was a record-setting 2,467 square feet last year. By contrast, the median unit in a new multifamily building has shrunk to 1,074 square feet from a peak of nearly 1,200 square feet in 2007.

Home building up but still low:

Homebuilders broke ground on 1.1 million properties last year, a healthy 10.8 percent annual increase from the depths of the recession. Before 2016, apartment buildings, more than single-family houses, drove much of the increase in construction. Now that single-family homebuilding is on the rise for the first time in a long time, this may cause the pendulum to switch back over to more home ownership across the U.S.

The good news is, even with more multi-family and apartment buildings going up the American dream of owning a home is still strong and thriving in today’s economy. If you’re in the market for a new home, Parry Custom Homes is here to help build you the perfect home for your family.

 

 

 

Parry Custom Homes is an established homebuilder in the Pittsburgh area.  Call or contact us today for more information.