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These are a few of the conclusions revealed in a series of in-depth surveys the Federal National Mortgage Association commissioned regarding American attitudes toward housing and home ownership. The surveys, covering almost 2,000 households, were taken in 1992, 1993, and 1994. John Buckley, senior vice president - communications for Fannie Mae, discussed the results at the Federal Reserve Bank of Cleveland's "Emerging Issues of the 1990's" conference last fall.
Single-family Home is the Ideal
"Eighty-two percent of Americans told us that they cling to the notion of the single-family home with the yard as their ideal," Buckley reported. "With all of the new options available to people, such as condos and co-ops and townhouses, people still have the dream of a single-family detached home with some space between them and their neighbors."
The survey showed further that people are willing to make considerable sacrifices to attain the dream. By a three-to-one margin, Americans say they would rather buy a house than retire 10 years early. By a four-to-one margin, they would rather own a home some distance from work than rent nearby. The same margin of those polled prefer owning a home over taking a better job in a location where they would have to rent. In all, six out of ten renters say that owning a home is among their highest priorities in life.
Many Still See Hurdles
Why the eagerness to own a home? The answer, according to Buckley, lies not in financial reasons but in the quest for security. "We found that people do not focus on the tax consequences of owning a home or see it as a way of gathering wealth for themselves and their families," he said. "Instead it means, quite broadly, security. Owning that piece of the rock, having shelter that is wholly theirs."
But while the great majority of Americans aspire to home ownership, many current renters perceive major hurdles to be overcome in attaining their dream. The largest of these is the down payment, a concern voiced by 47 percent of whites, 66 percent of African-Americans, and 59 percent of Hispanics.
A second issue, especially among African-Americans, is discrimination. Forty-two percent of African-Americans believe discrimination would prevent them from buying the house they would like to own, a concern voiced by only 14 percent of all Americans. Fifty-four percent of African Americans believe they face discrimination in the availability of mortgages all or most of the time.
Still another obstacle revealed in the surveys is a lack of information about the home-buying process. It showed that about half of all renters lacked the information that would make them comfortable enough to begin the home-buying process. This was found to be true among 64 percent of Hispanic renters, 57 percent of African-Americans, and just under half of whites. Overall, lack of information was found to be the fourth-largest obstacle to home ownership.
Fannie Mae Initiatives
Fannie Mae has launched a number of programs to address some of the problems and issues identified in the surveys, said Buckley. It has earmarked $5 billion for experimental underwriting programs, particularly those aimed at lowering down payment requirements. In addition, the company is developing mortgage products to help groups with special needs, such as senior citizens, the developmentally disabled, and people with AIDS. It has also launched an advertising outreach campaign aimed at groups identified in the surveys as being the most in need of information--those with incomes below the median, minorities, and people younger than 40.
For a copy of the housing survey, or information regarding other Fannie Mae initiatives, contact the agency at 1-800-732-6643, or write to Lisa Haas, manager, Public Information Office, Federal National Mortgage Association, 3900 Wisconsin Ave., N.W., Washington, D.C. 20016-2899.
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