Do Johnstown
The old American Dream of owning a house may be shifting, as renting becomes increasingly common.
A majority of Americans believe we are still in the middle of the housing crisis, despite recent media around increases in home sales and values. This finding was one part of a MacArthur Foundation survey of American households that demonstrated huge shifts in the public’s views of homeownership, the American Dream, and the recession. Staggering findings from the survey show that 54% of Americans see renting as more appealing than previously, 3 in 5 adults stated that renters can be just as successful as homeowners in achieving the American Dream and, of current owners, 45% see themselves renting in the future. It is easy to imagine the forces at work here—the housing market bust and slow recovery, the global economic crisis and shifting lifestyles and cultural views, especially from Millennials who came of age during a decade of instability. The big question remains: How permanent are these newly held beliefs and will they change after the U.S. begins achieving economic growth again?
In light of changing public opinions, data released recently from the Institute for Housing Studies demonstrated that between 2007 and 2011 the number of people renting increased 11% in suburban Cook County. The spike in renters has not meant increases in rental housing affordability, however; between 2007 and 2011, 14% of households renting across Cook County experienced rent burden (paying more than 30% of income toward housing costs), and there is a significant disconnect between the supply and demand for affordable rental housing countywide. The combination of past owners becoming renters, current renters hesitating to buy homes, and job loss and growing unemployment increasing the proportion of low-income renters have transformed the landscape.
Both this hard data and the opinion polls reflect how we are truly in a period of change—leading MPC to ask how communities can adapt to this changing landscape. We continue to work with eight regional housing authorities to provide rental assistance for working families through the Regional Housing Initiative, as well as conduct research on the rise of single-family homes being converted to rental properties and municipal strategies for managing this. Moving forward, MPC will continue to look for local and private sector strategies that promote attainable, sustainable communities and housing opportunities for all.