20 Fascinating facts about home ownership in the United States.

What percentage of people in the U.S. do you think own their own home? Has that number gone up or down in the last 30 years? What age group owns their home more than any other? What states have the highest and lowest home ownership rates, and how does the U.S. measure up against the rest of the world? 

When it comes to real estate, perception sometimes pushes consumer behavior more than facts. So these are some of the questions we set out to answer as we crunch the numbers on home ownership. You may be surprised what we found!

We combed through numerous articles, reports and credible sources like the U.S. Census Bureau, Pew research reports, CNN, and Realtor.org to come up with these 20 interesting and illuminating statistics:

1.  The U.S. homeownership rate, as per Q1 of 2015, is 63.7%, the lowest it’s been since 1990.

2.  Home ownership was at an all-time high of 69.2% in 2004, well before the credit bubble burst in 2008.

3.  To put it in perspective, the lowest point of home ownership was in 1960 and 1961 in the 62% and change range, but it’s never dipped anywhere near 62% again.  

American home ownership rates:

1960    62.1%

1965    63.3%

1970    64.2%

1975    64.6%

1980    65.6%

1985    63.9%

1990    63.9%

1995    64.7%

2000    67.4%

2005    68.9%

2009    67.4%

4.  The median value of a home has risen every decade throughout U.S. history since 1940. Even though home values took a temporary hit with the real estate crunch from 2008-2010, the median value was at an all time high as of 2010, at $179,900.

5.  Out of the 45 top countries, the U.S. sits #34 for home ownership rates.

Surprisingly, Romania has a 96.6% homeownership rate and Lithuania 91.9%, among many other Eastern European countries at the top of the list. 90% of people in China own their own home, India 86.6%, Russia 84%, Mexico 80%, Iceland 77.3%, Brazil and Italy 74.1%, Sweden 70.1%, Canada 69%, Australia at 67%, and the United Kingdom 66.7% right above the U.S., among others.

6.  Of all U.S. homes, exactly two-thirds, 66.9%, are owner-occupied, and the others are rentals.

7.  The U.S. counties with the highest average home values are:

Manhattan, NY $812,300

Marin, CA $759,300

San Francisco, CA $737,300

San Mateo, CA $710,100

Teton, WY $705,600

8.  The U.S. counties with the lowest average home values are:

Lechter, KY $56,900

Willacy, TX $50,500

Coahoma, MS $54,700

Harlan, KY $54,400

McDowell, WV $39,000

9.  Of adults 35 and younger, 36% own their own home.

35-44 years old:  59.1%

45-54 years old:  70.1%

55-64 years old: 76.6%

65+:  80% own a home!

10.  Every state in the U.S. has a home ownership rates over 50%.

11.  The states with the highest home ownership rates:

West Virginia 76.2%

Michigan 74.9%

New Hampshire 74.2%

Delaware 73.8%

Maine 73.3%

12.  The states (and district) with the lowest home ownership rates:

Hawaii 56.7%

Nevada 56.2%

California 54%

New York 53.8%

District of Colombia 45.3%

13.  New homeowners purchase more products and services in the first six months after moving than an established resident spends in a two-year period.

14.  The housing sector directly accounted for approximately 14 percent of total economic activity in 2009, but that has fallen dramatically. Still, about 40 percent of monthly consumer expenditures are housing related.

15.  Today, the average size of a home is 2,224 square feet. Compare that to the average size of 1,650 square feet in 1978!

16.  With all of that extra room, do we have bigger families and more people staying in each household? Nope! These days, the average family size in a household is 3.15, but back in 1978 it was bigger, with 3.33 person per household!

17.  2012 Pew survey found that 86 percent of Americans now believe the key to a middle class life is a secure job, and only 45% say the same about owning a home. in 1991, 70% of respondents in a CNN/Time/Yankelovich Partners poll said home ownership was essential to membership in the middle class membership, while only about 50% said it was a white-collar job.

18.  A recent survey states that 51% of people said the bust did not change their willingness to buy a home and an additional 27% said it actually made them more likely to do so.  That’s about 78% of the population who want to hold keys to their own front door.  

19.  86% of those surveyed, list the income-tax benefits of owning a home as a big reason to buy.  Being able to choose a good school system for their kids, privacy, and being free to fix up their home as they wish were also important factors.  

20.  Nearly two-thirds of people surveyed still believe purchasing a house is a safe investment. In fact, 81% of those surveyed either currently own a home and want to keep being homeowners in the future, or currently rent but plan on buying within the next ten years.

Everything you need to know about real estate closing costs.

When you’re buying or selling a home, there are a lot of people working hard for you to make sure the transaction goes smoothly, is error free, and to safeguard your best interests. They include appraisers, banks, home inspectors, loan officers, title and escrow staff, and many more. The fees for the various services inherent with the purchase or sale of a house are collectively called, closing costs.

It’s estimated that closing costs usually account for around 3-5% of the purchase price of the house when you're a buyer though those costs could fluctuate based on your situation (like if you’re taking out a mortgage to buy the property or just paying cash.) The good thing is that when you buy a home, your Realtor’s commission is paid for by the seller, which is usually 2.5%-3%.

When you are selling your home you take on paying both commissions – for your Realtor and for the Realtor who brought you a buyer and represents them. But of course you don’t need to pay for a mortgage loan when selling or any of those costs.

Like we mentioned, closing costs vary from place to place and based on the individual situation. For example, some states use separate title and escrow companies, some use combined title & escrow firms, and some use real estate attorneys, instead. But the here is an explanation of the typical closings costs you’ll see in most residential real estate transactions.

Points.

A point is an amount equal to one percent of the total amount of the mortgage loan you are taking out (not the total purchase price.) There are two classifications of points you may see:

Origination fee (also called points.)

This is the fee you will pay the lender for their service of delivering an approval for your purchase loan.

Discount points.

These points are essentially up front money you pay to “buy down” your long term interest rate. Typically, for each discount point you buy, your long term rate will be lowered by 0.125 – 0/375 percent. For those who plan to stay in their home – and their loan – a long time, discount points may save them big money.

Application fee.

$250 - $750. Goes to the lender.

When you first apply for a mortgage loan to acquire the house you want to buy, lenders and brokers may charge this fee as a general cost of doing business. They also usually have flexibility to waive the fee, apply it toward closing costs, etc.

Appraisal fee.

$350-$500. Goes to the appraiser or lender.

Every bank or lender will require that you get a certified appraisal on the home you are buying, which is a assessment of its value. This is an important step in the process, as it ensures the buyer is getting equitable value for the price they are getting.

Credit report fee.

$25-$45. Goes to the lender.

This fee covers the lender’s cost to pull your credit report, which is part of the loan application process.

Processing fee.

$500-$1,000. Goes to the lender.

Almost all lenders have a staff of people who meticulously prepare the documents of the loan application and real estate transaction for submission to the bank or lender’s underwriters.

Underwriting fee.

$200-$800. Goes to the lender.

Underwriters at the bank or mortgage company where you are applying for the loan will scrutinize your application and details of the transaction and decline or approve the file, or issue a conditional approval (the vast majority of the time) with stipulations for the borrower to meet.

Escrow fees.

$ varies based on location and home price. Goes to the escrow company.

While a few states use attorneys, most still use escrow companies, which are neutral third-party companies who facilitate the whole transaction and coordinate closing between the bank, lender, buyer, seller, etc. as well as handle the money.

Title insurance.

$200-$900. Goes to the lender’s insurance policy.

Title insurance is insurance taken out and paid for by the seller for the home buyer, while the home buyer pays their own insurance to protect the lender, who has a legal claim against the property until the mortgage is paid off.

Transfer taxes.

$ Varies. Goes to the lender, county, or municipality.

This fee pays for the service of transferring the tax responsibility for the property from seller to buyer.

Title company fee.

$150-$400. Goes to the title company.

The title company does conducts their due diligence to make sure the property is free and clear from issues about ownership or disputes about use.

Survey fee.

$100-$400. Goes to the title company.

This fee pays for a land survey, which determines the legal boundaries and definition of the property being sold. Some times, survey fees are lumped in with other title fees.

Document prep fee.

$25-$200. Goes to lender or title company.

This is a fee for producing and printing the hundreds of pages of documents needed in any real estate ransaction.

Home inspection.

$350-$500. Goes to home inspector.

The best money you’ll ever spend as a home buyer is for a thorough examination by a well-qualified home inspector. They will prepare a detailed report disclosing the condition of your property and any problems or defects, particularly with electrical systems, plumbing, some appliances, foundation, etc.

Pest (termite) inspection.

$50-$125. Goes to pest inspector.

California requires a pest inspection for each real estate transaction, to ensure there aren’t problems with termites, other active infestations, dangerous molds, etc.

Flood certification fee.

$15-$30. Goes to lender or insurance issuer.

Some times it’s necessitated that the insurance company determines whether your home lies in a flood zone or special flood zone, which is paid by you.

Recording fees.

$50-$200. Goes to the county or municipality.

This fee covers the cost of having your home sale or purchase officially registered as a matter of public record with the country government, meaning it’s official!

Courier fees.

$50-$150. Goes to lender or courier company.

Courier fees cover the cost of transporting documents back and forth between the lender, title company, escrow company, state recorder, etc.

Common neighbor disputes, part 1; Noise, pets, and water.

Robert Frost, the great American poet once said, “Good fences make good neighbors.”  While it probably wasn’t the most elegant thing he penned, it could be the most accurate.  Yes, we’ve all had run-ins with neighbors, those strangers who become an important part of our lives just because of their proximity.  The rule goes that if a neighbor is good, you probably won’t even notice them, but if they’re bad…they can make your life flat-out miserable.  

Whether you live in a house with a spacious yard, are stuffed close in a McMansion, or have neighbors above and below you in a condo or apartment, we’ve all had issues: loud parties on Tuesday nights, dogs who like digging up our grass, neon yellow paint colors, pink flamingos in their front yard, and not paying their fair share for that dreaded instigator of neighborly conflict –the shared fence.  

You could get mad, you could scream at them, you can even send your dog to their lawn and paint your house in pink and purple polka dots out of spite, but there may be a better way to handle challenging neighbors.  Good communication and a level head are your best allies, but knowing some of the laws and regulations also prove invaluable.  So here are a few guidelines on 3 of the most common challenges among neighbors: noisy neighbors, pet complaints, and flooding and water issues. 

Noisy neighbors.

Neighbors who are excessively loud are one of the most difficult blights to deal with because how-loud-is-too-loud is such a subjective thing that’s hard to measure.  Additionally, a backyard party on a Saturday night that goes until midnight may not offend most people, but an older or crabby neighbor might call the police.  (And the police have to come if a complaint is made, regardless of who is right or wrong.)

Condos and apartments are even more difficult with noise complaints because you usually have 3 or even 4 neighbors above and below you.  Condos usually have association rules and apartments have policies that look to minimize noise complaints.  Any grievances can be directed to the condo association or apartment management.

For homeowners, most municipal codes have some sort of clause that lays out what constitutes a noise problem.  For instance, it may define it as, “an unreasonable annoyance, disturbance or offensive activity that unreasonably inhibits another neighbor from using their property.”

There are a few things you can do: to take the subjectivity out of it, you could take an acoustical test that measures exactly who loud the neighbor is on the decibel meter.  Documenting that is a good start in case a civil action or complaint ensues. 

Before it gets to that, try to talk to the neighbor.  Ask them politely if they could give you notice when they’ll have a gathering or event where the volume will be up, are doing early construction, etc.  Ask for a pre-arranged beginning and end time to the noise.  Hopefully, they will respect you communicating and respond.  It’s a lot better than calling the police every time things get loud.  

Other common noise complaints are over noise that is “habitual or mechanical in nature,” like a loud bar down the street or a machine shop.  Usually the City’s Code Enforcement Department is the place to contact to monitor the noise from businesses.

Here is the Sacramento Police Department’s website page that deals with noise complaints: 

http://www.sacpd.org/faq/nuisance/

Pet complaints.

You may have a crazy cat lady living next door who lets them infest the neighborhood, or a neighbor who has roosters who come alive at 3 am, but usually pet issues revolve around dogs.  There are three kinds of issues with dogs: excessive barking, relieving themselves on your lawn (the dogs – not the neighbors,) and dangerous dogs not properly leashed or fenced.

If a dog barks excessively – which usually happens when they leave a dog unattended in the yard – it falls under some of the same standards as noise complaints.  

Leash laws are laid out in most municipalities, requiring dogs to be properly leashed or behind locking fences for public protection.  If a dog is not, your city or municipality will take it very seriously because it’s a huge liability if the dog attacks someone.  Condos or apartments or homes with a Homeowners Association will have additional regulations that may get as specific as weight, size, and type of pet.  

Dogs relieving themselves on their lawn also fall under the verbiage of municipal leash laws.  Generally, pet owners have a civic responsibility to clean up after their pet.  

All animal and dog complaints are handled by the City's Animal Care and Control Division, so give them a call before you contact the police.  Here is Sacramento County’s web page on animal control and complaints:

http://www.animalcare.saccounty.net/AnimalIssues/Pages/BarkingDog.aspx

Flooding and water issues.

Noise and pets may be incessantly annoying, but nothing can harm your property as quickly as water damage.  Usually this occurs in apartments or condominiums where the upstairs neighbor has a pipe burst, bathroom leak, or appliance like washing machine, icemaker on a fridge, or dishwasher malfunction.  When that happens, there is very clear accountability who is responsible (the neighbor) and who has to fix it (the condo association or apartment manager.)  In California, the law always falls on the side of tenant rights so it’s a simple process to make complaints and force them to make it right.   

But water problems also occur between side-by-side neighbors.  This is often from faulty irrigation or bad sprinklers that cause flooding, kill neighbor landscaping, or even reach the house and cause property damage.  

Of course you should document any water damage with photos/videos/and a log, and report to the proper municipal complaint agency or association.  But with water damage, another very important issue could rear its ugly head: mold.

Water damage over time causes mold, which causes serious health concerns that lead to hospitalization or even death in extreme cases.  There’s a whole line of litigation that deals with mold but be aware that a landlord or condo association is responsible for remediation if mold exists, which includes replacing damaged sheetrock or other materials and proper city inspection.   If you are having respiratory or health problems that you think are coming from mold (especially if you have children) then you can buy homeowner mold testing kits and from there, contact mold inspection and remediation companies. 

Here is the Environmental Protection Agency’s web page on mold issues: 

http://www.epa.gov/mold/moldresources.html

***

Look for our next post in this serious, when we tackle neighbor parking issues, trees, and fences!

DIY house painting tips.

Congratulations on buying your new home!  Now comes the hard part - fixing it up and redecorating to your liking.  You'll want to hire a professional painter if your budget allows, but if you're willing to invest some elbow grease and your weekend to the task, you may be able to save a bundle by painting some of the interior rooms yourself.  Here are some DIY painting tips to make sure it comes out looking great! 

It’s all in the prep work.

The secret to a great paint job is to invest time in getting the room prepped properly.  That means scraping and sanding any loose paint, patching nail holes or cracks with compound, letting it dry and sanding smooth.  If you’re painting over a very glossy existing paint, go over it lightly with sand paper.  Once it’s all ready, wipe down the walls with a wet rag and you’re ready!

Put the furniture in the middle of the room. 

Trust me, you don’t want to try all sorts of gymnastics to paint around furniture.  So move everything to the center of the room and cover it with a  tarp or an old blanket. 

Taping.

Buy a roll or two of thick blue tape and mask off the edges you don’t want painted.  It costs a lot more than normal masking tape, but that’s no good and will pull once you peel it off.  I prefer the 3 or 3 ½” rolls.  Run this carefully along the lip of baseboards.  Put a baggie and rubber band around doorknobs and then tape around the outside.  If you’re a beginner, you might want to tape the edge of window and door frames if you don’t plan on painting them – but keep in mind you’ll still probably have to touch them up because the tape isn’t perfect. 

Buying paint.

I’ve used them all, and I recommend Sherwin Williams or Benjamin Moore paint.  Ask if they have a contractor series, which is usually less expensive because they skip all the fancy advertising.  If you have to use Home Depot paint, Behr is probably their best brand.  Do not try to skimp a few bucks and buy cheap paint – the poor quality will show and it will be harder to work with.  Stay away from Martha Stewart and Ralph Lauren paints and such – you’re just paying a premium for the name. 

How much will you need?

It’s recommended you buy one gallon for every 400 square feet.  Keep in mind that’s just for one coat, and it usually makes sense to put two coats on.  It’s always better to have too much, not too little.  Mark the lids with a sharpie so you can store it and use it later for touch ups or to match colors.

Standard ceiling paint and white trim paint is usually universal throughout the house, so always buy a gallon, not a quart. 

Choosing colors.

The biggest mistake people make is rushing into a color choice.  Remember that colors usually look much brighter and bolder when on a whole wall, as opposed to a small swatch in the store.  So if you’re looking at any bold color, I recommend going two shades lighter or more neutral so it’s not shocking once you paint the whole room!  Also, the store usually sells 1 quart sample sizes of colors, so take a few home and try them out first.

What kind of paint do you want?

You’ll look for an interior latex paint.  Latex means it’s water-soluble so you can clean up with soap and water and it’s not toxic and doesn’t stink up the whole house like oil-based paints (which aren’t even available in a lot of states.)  Rule of thumb – you can put latex paint over surfaces previously painted with oil or latex paints, but you can’t paint oil over latex.

Choosing between flat, eggshell, satin, semi gloss and gloss paints.

The sheen of the paint corresponds to how shiny it is.  Gloss and semi-gloss paints have a nice shine to them and also are the most water-resistant.  You usually want a semi-gloss paint (gloss probably isn’t recommended) in the kitchens, bathrooms, and laundry rooms.  Ceiling paint is standard flat, and believe it or not isn’t just plain white – ceiling pants usually have a tiny bit of blue tint in them.  Baseboard and trim is commonly satin or semi-gloss for a little shine.  Most living rooms, bedroom, hallways walls, etc. are flat or eggshell.

Box paint.

Shake and stir paint really well before opening (with a can opener, paint opener, or flathead screwdriver.)  If you have more than one gallon of the same paint, pour all of them into a big f-gallon bucket.  Mix them really well and then pour back into the individual cans when done.  Even though the paint store follows computerized color formulas, each can of paint has tiny differences.  You don’t want one wall to be slightly off, so mix, or “box” them all up so you know all the paint is uniform. 

Brushes.

Again, you don’t want to skimp on brushes.  Buy one good wooden-handled brush and take good care of it.  The cheap ones will loose bristles as you paint, making a mess.  Watch out because there are brushes for oil based painting and brushes for latex paints, which you'll probably use.  You’ll want an angled brush – probably 2 ½” so you can paint the edges of the walls and also use it for trim.  Wash it thoroughly and comb out the paint when you’re cleaning, and never let paint fully dry on there.  Make sure not to push hard or bend the bristles back and you’ll preserve it.  Put it back in the case and wrap it with a rubber band to preserve the shape of the brush.

Remove wall outlets.

Take the time to unscrew all outlet covers and light switch covers.  Tape the screws to the covers so you won’t lose them and put them all in a central place.  Then, cover the switches and sockets with a piece of tape so they won’t get splattered.

Brown paper or newspaper cabinets, etc.

Cover lights, chandeliers, cabinets, fireplaces, or anything you don’t want to get painted with newspaper or even better, the rolls of thick brown paper they sell in the paint department of your hardware store.  Tape it down with blue painters tape so it doesn’t pull when you peel it back.  Also, plastic bags work great.

Cover your shoes.

As you walk in and out, you may step on small paint spray, drops or spills, which you may unwittingly track on carpets and through the house.  So I use small plastic shopping bags as shoe covers.

To prime or not to prime?

Many people get hung up on using expensive or specialty primers before they paint.  Unless your wall is hot red or bright pink or you have new sheetrock, you probably don’t have to prime.  Instead, just put two coats of paint over the walls.  The primer is usually white, so you’ll probably need two coats AND primer if you go that route, though you can get your primer tinted.

Tarp it.

You may want to spend money on one thick canvas tarp.  You’ll use this to run along the wall you’re painting.  Instead of getting a giant square tarp, get one that is narrow (4’) but runs long (10’) which is ideal for painting walls.  You can cover furniture and other things with old bed sheets and blankets and newspaper.

Your #1 goal – don’t make a mess.

Your first and foremost goal when painting is not to spill.  Put paint cans and trays in the center of the room on a piece of cardboard so you don’t kick them over or step on them.  Don’t over fill your paint cans or roller trays so it slops around.  One little mishap can cost you a carpet or sofa, so exercise caution.

Use an extension pole.

When rolling the walls, they tend to come out smoother and more uniform when you attach the roller to an extension pole.  But instead of spending money on a fiberglass telescoping pole, but one of the wooden ones that screw into the roller handle, or even use a broomstick handle in a pinch.  If you're painting the ceiling, you'll definitely want to use an extension pole (and lots of tarps!)

Caulk the ceiling line.

Textured ceilings are a nightmare, especially “popcorn” ceilings.  When you’re painting a flat wall that butts up against a textured ceiling, it’s impossible to run a straight even line as you paint, no matter how god you are.  So here’s the best trick ever – take a roll of white, paintable caulk and run it in the corner of the wall and the ceiling.  Run a good bead all the way down the horizontal wall/ceiling line all the way around the room.  Then, smooth it out and wipe away the excess with a wet rage.  When it dries, it will form the perfect smooth, paintable line to run your wall paint up to the textured ceiling.  By the way, those roller pads that supposedly help you paint a straight line against the ceiling are junk – the wheels eventually get wet, which spreads paint everywhere.

Keep you brush and rollers wet.

Don’t let your roller dry out.  When you’re using your brush, keep the roller wet by sitting it in the paint tray. If you have to leave it for a while, roll it in plastic wrap or the plastic cover it came with – it will keep it from drying.  Keep your brush edge dipped in paint as well in the tray or a coffee can with a little paint in the bottom, or wrap it in plastic so it doesn’t dry out.

Cut then roll into the wet edge.

Take on one wall at a time.  Use the brush to “cut” – paint an area about 6 inches wide along the ceiling, baseboards, trim, etc.

Feather your strokes.

Whenever you’re blending one painted surface into another – brush strokes into roller strokes and vice versa, feather it out by taking off the pressure, painting increasingly lightly so it all blends in.

Don’t push hard.

When you use the roller, don’t push hard or it will create lines and uneven surfaces.  Make sure the roller is really wet but not dripping and dip frequently.  Don’t push on a brush or it will spread out and ruin the bristles.

Trim, roll, trim (then reverse.)

I usually trim along the ceiling, baseboards, etc. and then roll in, making sure to feather my roller strokes to blend it in.   Then, I move to the next wall, always leaving a wet edge.  Once I go around the room and come back, I’ll roll it and then trim again if it needs a second coat.  

Paint the trim.

If you’re painting the trim, too, remove all the tape the next day.  Run a new line of tape along the floor and also against the now-dry wall.  Use the brush to carefully paint with horizontal strokes, feathering in to each wet edge.  Don’t leave too much excess or it will drip. Paint over any wall paint that happened to splatter or drip on the trim.  

Let it dry.

Don’t be impatient and start pulling up tape and messing with the walls and ruin your work.  Leave it over night to give it ample time to dry.  In the morning, you can pull up the blue tape (which won’t pull paint off the walls,) put outlet covers back on, and put the furniture back in place.   

Clean up. 

Once you are done, take all wet brushes, rollers, pans, and paint cans out to the front lawn or the garage on newspaper.  Pour all the excess in the can, seal it tightly with a hammer, and label it.  Wash the brushes thoroughly in warm soapy water and spin them out by the handle to dry, then put them in their cases again.  Hang brushes upside down so the bristles stay in form.  Roller pads are usually cheap enough to just put in a plastic bag and throw out.  Let any container dry in the sun before you put it away or throw it out.  Never dispose of oil based paints or paint thinners in the drain, on your lawn, or in the sewer.