There seems to be a growing resentment towards the owned housing industry. How many articles have you read, how many TV segments and social media posts have you seen in the past few years that do anything and everything to berate, belittle and besmirch the concept of owning or buying a home?
Answer: Too many.
The narrative is consistent amongst four themes:
1. Renting is cheaper than buying.
2. Renting gives you more freedom.
3. The costs to buy and sell are far too high.
4. The costs to maintain a home don’t make sense.
In all these narratives are beneficiaries: corporate investors buying up single-family homes by the dozen, paying up to out-maneuver individual buyers, landlords, especially bigger landlords with massive tax breaks and incentives, class action lawyers, politicians focused on elections decrying developer profits instead of simplifying zoning and building regulation, and of course some in the media whose negative stance towards housing garners clicks, likes and engagement…..and profit. Add into the mix much higher interest rates that have fueled a housing recession…..and not achieved much in reducing housing costs at all, a bad combination!
Here is a quote from Larry Fink of Blackrock (that manages $10 trillion in assets (and is an investor in COMPASS, Zillow, Redfin, Anywhere and Elliman) that should awaken all to the one aspect about housing that many forget (or conveniently choose to ignore) in their self-serving ambitions:
“As a society, we focus a tremendous
amount of energy on helping people live
longer lives. But not even a fraction of
that effort is spent helping people afford
those extra years.”
While owning may be more expensive than renting at times, while you may not “make a killing’ flipping homes, while buying and selling and maintaining are expensive, the one most important aspect of homeownership is the ability of individuals – who may not be as astute or disciplined about investing their money – to accumulate wealth and build equity over time via an essential need – housing – leading them to own a nest egg once paid off over time that for many is a primary source of retirement security.
Home ownership as forced savings helps create a real asset of value while providing shelter that you would have to pay for regardless…AND for many it provides housing cost stability during retirement.
Then of course there are the hundreds of other benefits to ownership, but today more than ever we need to be aware that an aging society in debt is best served with individual fiscal security nets, not just those provided by the government.
As always, feel free to shoot us a message if you want to chat buying/selling strategy, current market trends, or anything else real estate related!
Considering a purchase or sale in Northwest Denver and beyond? I’m Jason Sirois, a Denver realtor specializing in areas like Sunnyside, Berkeley, Highlands, Wheat Ridge, and Applewood. Whether you’re buying or selling in Denver, I’ve got the Denver real estate knowledge you need. Get in touch today with a local Denver realtor to chat about your goals.
