Americans growing disillusioned with the homeownership dream, new research says

January 28, 2010 10:46AM

“The old ‘normal’ will not return,” said John McIlwain, a senior fellow at the Urban Land Institute and author of a new research paper, “Housing in America: The Next Decade.” According to McIlwain’s, research, the post-recession U.S. housing market will look strikingly different, influenced largely by shifting demographics and consumer behavior. Americans are beginning to abandon the notion that homeownership is the quintessential “American dream,” he said, as evidenced by the growing number of borrowers who are walking away from their mortgages. He predicted that the future will bring a regained popularity in renting, particularly from Generation Y, and a renewed view of homes as shelters, not investments. Baby-boomers, with their home values depreciated and their retirement funds diminished, will show less interest in second homes and later, in traditional retirement communities. “Over time, a new mode of metropolitan development will emerge, presenting opportunities and stiff challenges. Those who fail to understand these new trends will find themselves building what is no longer in demand,” McIlwain said. TRD