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The figure of nearly one-third of homeowners oweing nothing (having no mortgage) comes from a Zillow estimate, so it should not be taken as hard data. However, that was (to me) a surpisingly large percentage. Regional differences are fairly pronounced, with Pittsburgh showing 38.6% and Washington D.C. at 15.5%. There is also a wide variation by age group, with 85 and older at 77.6%. The age factor is not completely linear, however, with an "outlier" group of 20-24 year olds at 34.5%. My thinking is that not that many 20-24 year olds are homeowners at all, and those that are may have had substantial help from parents and/or trust funds.
Doom-and-gloomers in this forum like to emphasize how precarious the situation of people is, but here is a counter-indication of how solidly situated many, many people are.
The figure of nearly one-third of homeowners oweing nothing (having no mortgage) comes from a Zillow estimate, so it should not be taken as hard data. However, that was (to me) a surpisingly large percentage. Regional differences are fairly pronounced, with Pittsburgh showing 38.6% and Washington D.C. at 15.5%. There is also a wide variation by age group, with 85 and older at 77.6%. The age factor is not completely linear, however, with an "outlier" group of 20-24 year olds at 34.5%. My thinking is that not that many 20-24 year olds are homeowners at all, and those that are may have had substantial help from parents and/or trust funds.
Doom-and-gloomers in this forum like to emphasize how precarious the situation of people is, but here is a counter-indication of how solidly situated many, many people are.
Now if only that actually had anything to do with the actual problem.
The figure of nearly one-third of homeowners owing nothing...
There is also a wide variation by age group, with 85 and older at 77.6%.
Doom-and-gloomers in this forum like to emphasize how precarious the situation of people is,
but here is a counter-indication of how solidly situated many, many people are.
Or... it reinforces the perspective that the "solidly situated" financially healthy homeowners in LA
are either residents of long standing who bought a LONG LONG time ago or they have family money...
or they have serious deficiencies in the rest of their financials.
New arrivals (without a big wad), younger couples and others of moderate income...
the ones who make up the largest portion of the traditional homeowner profile everywhere else...
will have a very tough time ever getting to that "solidly situated" status in LA.
For what many houses cost today, many people could afford to buy one in cash. If you had 100K sitting around, why pay the bank 3 grand to loan you money you don't need?
I found the map more interesting than the article. If you look, in most cases the higher the poplation density, the lower the percentage of outright ownership. The article attributes that to the fact that home prices are higher in cities and harder to pay off, but I have to wonder. I would think that an equally large factor would be that cityfolk tend to move more often, while countryfolk tend to stay put for a long time. I don't know if that is just a fact, or just my perception, but it certainly seems like it is true.
For what many houses cost today, many people could afford to buy one in cash. If you had 100K sitting around, why pay the bank 3 grand to loan you money you don't need?
Hence why we have trillion dollar deficits. The current economy is addicted to the bank credit going into circulation.
I have no mortgage on my home, my brother just paid off his and my sister has had hers paid off for years. Of course my parents are free and clear as well. We all bought reasonable homes for our incomes and didn't use the equity as a piggy bank.
I'm mortgage free, the same for my bro, my dad, and 3 other people I know. I bought what worked for me...have no use for big homes or the expense that goes along with them...
My parents paid off their modest home in southern California within 10 years after purchase (1975). My younger brother paid off his small home within 10 years also (but was single with roommates for the first 7 years). My other brother (Colorado Springs), and myself (Iowa) have no mortgage on our homes. I have a small condo. My brother in CO has a very large house in the hills, but also a very successful career.
Last edited by smpliving; 01-11-2013 at 06:41 PM..
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