From Lennox Scott: Great stuff
The benefits of being a homeowner are great in number. Of course there are the financial benefits of building equity and developing one’s own economic foundation for their family’s future. And then there are the personal riches that come with owning a home, including those that fuel a healthier family and community. It is these intangible benefits that people often forget about when one buys or owns a home, but they are certainly worth taking note of.
A few years ago the National Association of REALTORS® authored a report entitled “The Social Benefits of Homeownership and Stable Housing,” which discussed evidence regarding the personal gains that come with homeownership. This report did not focus on the financial aspects, but rather it directed its attention to the social advantages that result from being in an owner-occupied home.
The report provided further support to theories that are already well-founded in American culture. It suggested that homeownership fosters household stability, social involvement, environmental awareness, local political participation, good health, low crime, and favorable community traits.
Homeownership has long been associated with strong neighborhoods and communities. As the research indicates, homeowners are generally more committed to their neighborhoods, therefore they are more likely to make friendships with neighbors, and are more likely to participate in voluntary and political activities that go towards developing a sense of community.
The NAR research reported findings that conclude that homeownership is particularly beneficial to children. It stated that children of homeowners are more likely to perform higher on academic achievement tests and finish high school; these children also report fewer behavioral problems in school. Considerable evidence suggests that homeowners are typically more satisfied with their homes; therefore they are more likely to stay in their homes for longer periods of time. All in all this imparts a sense of security that ultimately impacts the members of that household, including children.
Buying a home is likely the most important financial and emotionally filled decision of a person’s life, but as research and history have shown, the pay-off goes far beyond tax breaks and equity—it leads to happier, healthier families, and communities.
Written by Lennox
April 28, 2010 at 2:06 pm
Posted in Homeownership, NAR Research
They’re HEEERRRRRREEEEE . . .
There are many names for the Echo Boom generation: Gen Y, Millennial Generation, Generation Next, Net Generation, Millennials, Boomerang Generation, and Trophy Generation, to name a few (ok, several). Regardless of what you call them, the members of this generation are quickly coming of age; some are even starting to enter the housing market and there are many, many more to follow.
Echo Boomers were born roughly between 1982 and 1995, a period of time referred to as the “Echo Boom” because they are largely the offspring of the Baby Boomer generation. Fast forward to 2010, there are approximately 76 million Echo Boomers between the ages of 15 and 28, making them second in size only to the Baby Boomers*. According to current U.S. Census figures, 67.2% of this generation can be expected to become homeowners by their mid 30s which equates to just over 35.5 million households**. The National Association of REALTORS® 2009 Home Buyer/Home Seller Profile predicts that of this 35.5 million, 21% will be single female buyers, 12% will be single males, and 61% will be married couples or partners (couples/partners are counted as a single household). It’s worth pointing out here that the aforementioned U.S. Census figures also state that since 1982 homeownership rates have fluctuated very little; anywhere between 64% and 69% during this 28 year span.
As you wrap your head around those figures, think about the impact that this generation is going to have on housing in the coming years. According to a recent economic report by Moody’s, builders are currently developing about 500,000 housing units a year. Add into this equation that the Echo Boomers will be buying homes along side repeat purchasers from other generations and you can quickly surmise that in the foreseeable future we are going to have a shortage of housing in the “more affordable” markets (affordable = homes priced at or below the median price in a given market).
The onset of the Echo Boomers in the housing market is a stark reminder of how important our community’s growth management plans are. The sheer size of the Echo Boom generation will have a powerful effect on housing demand over the next decade, but will there be enough homes to meet that demand? Current studies say no, reinforcing the importance of implementing smart growth management NOW. The first wave of change will likely occur in the more affordable price ranges – especially in those areas that are close to the job centers. Over time, the effect will fan out and be felt by the outer suburbs, causing a chain reaction of sales up the price points.
The Echo Boom generation has been defined as high-tech, high-touch, social networking, iPod listening natives of the digital realm who trust their peers’ advice over most forms of advertising. This is the generation that will likely find the home of their dreams on a 4G wi-max third-generation iPad and will contact their real estate agent via Twitter or text messaging. But as foreign as some of this may sound to some of you, they are (and will be) home buyers none-the-less, and real estate professionals and companies need to continue to adapt to this generation’s expectations and habits.
So, the moral of this story is that I believe that the Echo Boomers represent the silver lining for the real estate market and U.S. economy. That might be a lot of responsibility for a single generation, but they’re unarguably emerging as the next heavyweights in housing, and I might add, not a moment too soon.
*There are no precise dates for when the Echo Boom generation starts and ends because commentators have used birth dates ranging from the mid 1970s to 2000. This subsequently effects population figures which have been estimated to be anywhere from 60 million to 100 million. The age and population figures cited in this article represent an approximation based upon information found in studies done by the National Association of REALTORS®, current U.S. Census data, Wikipedia, and various media sources.
** U.S. Census homeownership rates are calculated based on households, not people.
Written by Lennox
April 12, 2010 at 5:27 pm
Posted in Echo Boom, Market Trends, The Economy
Helping Keep Kids Healthy And At Home
One of the things that I am most proud of at John L. Scott is the work we do through the John L. Scott Foundation. We believe it’s our responsibility to live life as a contribution to others by supporting our local communities. But for me personally it goes way beyond that.
Anyone who knows me knows that I sincerely believe that homeownership is the foundation to healthy communities. It’s not to say that you have to be a homeowner in order to be a vital part of your community, but it has been proven time and again that people who own a home unarguably have a greater investment in the well being of the area in which they live. And that tends to lead to stronger, healthier communities.
A major part of healthy communities is keeping our kids healthy. That’s why we founded the John L. Scott Foundation 13 years ago and it’s why we chose Children’s Hospitals to be the primary beneficiary of our philanthropic efforts. There are so many worthwhile organizations and causes to support, but for a company that promotes healthy communities, the well being of our children seemed like a natural choice.
As Seattle Children’s founder Anna Clise’s cousin, a Philadelphia-based physician, told her in 1906 after losing her son to inflammatory rheumatism, “There’s nothing so important to be done as service to children. Find out what is not being done that is necessary and worthy, and do that.”
-Dr. John Musser
At John L. Scott, we couldn’t agree more.
The John L. Scott Foundation currently supports 20 Children’s Hospitals and related medical facilities throughout the Pacific Northwest. It is entirely funded by our agents and staff members through agent commissions and staff pay roll deductions. Our approach to fundraising is to sponsor events that enable us to leverage our charitable dollars so that we can raise even more money for children’s healthcare. Through these efforts, I’m very proud to report that we were able to help raise over 5.7 million dollars in 2009!
Whether it’s by donating money, answering phones at Radiothons, or cooking dinner at Ronald McDonald House, I want to thank everyone who supports the John L. Scott Foundation and the role each of you play in helping keep kids healthy and at home.
For more information about the John L. Scott Foundation and to see our 2009 Annual Report, please visit www.johnlscottfoundation.org.
Written by Lennox
April 9, 2010 at 12:02 pm
Posted in JLS Foundation
