Is home ownership still the American dream?

Some analysts are questioning whether the public still considers home ownership to be part of the American dream.

The foreclosure crisis and plummeting home prices have shaken some people’s perceptions of home ownership. Many young professionals are now putting home ownership on hold and opting to rent as they get their finances in shape.

A recently released Coldwell Banker survey revealed a shift in Americans’ perceptions of home ownership, from a financial perspective to a more emotional one. Another survey by Woodrow Wilson Center found that the majority of Americans rated the importance of home ownership on a personal level at 10 out of 10.

“In 2001, if you bought a house, it didn’t matter what phase of life you were in,” Marilyn Geewax, National Public Radio’s senior business editor. “If you held onto it until 2005, you could flip it and make a profit. Today, home ownership is really returning more to that idea that a house is someplace where you settle down. You’re looking for a stable neighborhood. You look at a house as a way to shelter your loved ones, your possessions, and your money . . .

“Instead of taking things for granted, people are protective of their jobs, homes, and futures,” says Robi Ludwig, a psychologist in New York. “And now that we’re picking up the pieces [after the financial crisis], we’re seeing a psychological shift. Instead of looking at homes through the eyes of an economist, we’re realizing that a home doesn’t solely equate to financial return or measure only to a mortgage amount. Instead the home is the emotional center of our lives, and it remains a critical component of who we are.”