NEW YORK (CNNMoney) -- As the foreclosure crisis continues to wreak havoc on the housing market, a source of national pride has taken a sour turn. Home ownership is on the decline and, according to a recent Morgan Stanley report, the United States is fast becoming a nation of renters.
Last Friday, the Census Bureau reported that the percentage of people who owned a home had dropped to 65.9% during the second quarter -- its lowest level since the first quarter of 1998 and a far cry from the high of 69.2% reached in late 2004.
Yet, in a research paper issued a week earlier, Morgan Stanley (MS, Fortune 500) analysts Oliver Chang, Vishwanath Tirupattur and James Egan argued that the home ownership rate is even lower than the Census Bureau statistics say.
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The rapid growth of HOAs during the past four decades appears headed for a downturn with fewer homeowners to comprise them.
1 comment:
Ah, but membership count remains the same even though the identity of the members change. You can't get rid of HOA property until you find someone else to take your place. The banks will be members wherever a homeowner was foreclosed by the lender.
There certainly will be fewer "natural persons" owning HOA-burdened property. They learned that "HOAs preserve property values" is nothing but a big fat lie and in any event the "tradeoff" is not worth what (if any) little benefit the HOA might bring. The word is out, HOA-burdened property is a bad investment and should be avoided where possible.
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