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Th e M Rep o RT | 27 Feature Th e M Rep o RT | 27 A t the kickoff of the spring homebuying season, the country faced a daunting reality: Would-be buyers were still struggling to get access to credit, and worse, the homeownership rate had fallen to just 63.8 percent—its lowest point since President George H.W. Bush had taken over the Oval Office. In what was supposed to be the year of the turnaround, it was a hard blow. Despite rising employ- ment, low interest rates, and an overall improving economy, many prospective homebuyers are indu- bitably being left in the cold. Yet, there was a glimmer of hope on the horizon. Though home- ownership rates had slipped, the rate of total households—which includes both homeowners and renters—appeared to be on the rise. Economists say that's a good thing. The majority of renters eventually become homeowners and experts suggest that the influx of tenants may be a sign that young profes- sionals and other families are finally moving out of their relative's homes and forming their own households. There's just one hitch. The increased demand in the rental market has sent rent payments skyrocketing. While some economists believe this fact may offer a nudge toward homeowner- ship—at the moment, it is cheaper after all—others worry whether oc- cupants will have enough padding in their budgets to save for a down payment later on down the road. But perhaps the bigger question is, do they even want to? In a new study by the Urban Institute, the research organization projects that new renters will out- pace new homeowners in the com- ing decades. While there will still be more homeowners than renters, it's expected that the homeowner- ship rate will continue to decline. With all the barriers potential homebuyers face today, it's no surprise that the aspiration of homeownership—once the corner- stone of the American Dream— feels overwhelmingly out of reach. Prospective buyers who want to buy homes may simply be too afraid to try. Time and time again, even in households with sufficient incomes and debt levels, cynical would-be buyers are turn- ing away from the opportunity to own a home. Is the problem psychological as much as financial? According to Robert Schiller, an economics pro- fessor at Yale University, it might be. "The national psyche has absorbed the tribulations of the millions of people who have been living in homes worth less than their mortgages, struggling to make payments and yet unable to sell," Schiller said in a 2013 piece for the New York Times. "Smaller living quarters may become more socially acceptable." The American Dream is at a tipping point. The Dream Delayed? W hen it comes to the Ameri- can Dream, perception is everything. After the 2008 financial meltdown, the very model that has served as the foundation of our country's ideology—that every U.S. citizen has the equal opportunity to achieve success through hard work, determination and initiative—is unquestionably on shaky ground. In a 2014 New York Times poll, the newspaper asked respondents whether or not they still believed in the American Dream. Just 64 percent did, the lowest result in roughly two decades. A second study by Pew Research, revealed that 86 percent of Americans believe the most important element to living a middle-class lifestyle is a secure job; in 1991, 70 percent had indicated that homeownership topped their list. Homeownership came in as the third factor in the latest survey, at just 45 percent. The seemingly morose atti- tudes toward homeownership is assuredly borne out of consumers' financial woes: poor credit his- tory, tighter lending measures, the inability to pay off existing debt or to save for a down payment, and the more than one-trillion The Tipping Point With the economy improving, are consumers once again being swayed toward homeownership? By Chad Jampedro