The L.A. Times reports:
Two-thirds of Americans still see a home purchase as a safe investment, but that's down from 83% in 2003, according to a study by Fannie Mae. Homeownership has fallen to 66.5% of the adult population, down from down 69.2% in 2004. A Harris Interactive polls says 70% of Americans aspire to homeownership, down from 77% a year ago.
The economic downturn and stricter mortgage standards are driving much of that decline, but economists say there's also a growing belief among many that they can live better by renting rather than straining their finances to buy a house.
Adding to that is a sense among many younger adults that they will need to move for their careers, making them hesitant to buy lest they be forced to sell at a loss.
Renting is an implied put option. Especially with these numbers:
In Southern California, median home values fell again in January, to $270,000, down from $505,000 in July 2007.
What a drop.
