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Homeownership Stronger in Higher Priced States

By
Steve Cook, Real Estate Economy Watch

Support for homeownership is greater in states whose median home value is higher than the national average, according to a new national survey of homeowners.

Nationwide 72 percent of homeowners in a recent survey by HomeGain indicated that they were satisfied with owning a home and 28 percent said they were dissatisfied. An analysis of results from a representative selection of states found that more homeowners in wealthier markets evidenced greater support for homeownership while those in more affordable markets were generally less supportive.

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In New York State, the second most expensive state in the nation to buy a home, support was strongest, 77 percent. In California, fifth most expensive, support was 70 percent. Florida, twelfth most expensive state, support was 67 percent, and in Illinois, twenty-ninth most expensive, support was only 51 percent. Only Texas countered the trend. Though it ranks thirtieth in median home price, Texas

homeowners supported homeownership by a 75 to 25 percent margin.

Among homeowners dissatisfied with homeownership, 64 percent said that price depreciation was the primary reason. However, depreciation seemed to have no effect on support for homeownership on a state by state basis. Some states like California in the Pacific region, where prices have fallen 10.7 percent since 2009, and homeownership support in has remained high. In Texas' region, where support for homeownership is high at 75 percent, prices actually appreciated 2.1 percent last year. Illinois, where support for homeownership at 55 percent was lowest among all the states analyzed, its home prices have actually fared better than most regions, with only a 5 percent decline in prices over the three year period compared to the 6.1 percent national average.

"The HomeGain 2012 National Home Ownership Satisfaction survey shows in spite of declines in the values of homes nationwide, satisfaction among homeowners remains high at 72 percent, with nearly 3 of 4 home owners satisfied with home ownership." said Louis Cammarosano, General Manager of HomeGain. "Of the 28 percent of surveyed homeowners who indicated they were unsatisfied, 63 percent cited price depreciation as the primary reason," said Louis Cammarosano, General Manager of HomeGain.

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