NEW YORK (Dow Jones)-- The long-held belief that homeownership is a sure-fire ticket to building wealth and equity might be changing, according to a recent survey from the National Foundation for Credit Counseling.
Nearly half of those surveyed no longer think owning a home is a realistic tool to build wealth. Consider it a byproduct of the housing crisis, as millions of Americans face plunging home values, leaving many stuck with a house worth less than the mortgage. This is only adding to the number of foreclosures and short-sales, eroding prices further and slowing recovery.
Would-be buyers are sticking with landlords, while many who lose their residence return to writing rent checks.
"It appears that whether a person was directly affected or not, Americans' attitudes toward homeownership have shifted," said Gail Cunningham, a spokeswoman for the nonprofit credit counseling organization. "If people are gun-shy about buying a home, how are we going to build wealth?"
The telephone survey, which included 1,001 adults interviewed about a month ago, also found that almost one-third do not think they'll ever be able to afford a home, despite those lower prices, and 42% of those who once purchased - but no longer own it - don't expect to be able to afford another.
Meanwhile, 74% who haven't yet been to the closing table said they could benefit from professional first-time buyer education beforehand.
"People now seem to grasp that buying a home is a complicated process and admit that they would benefit from education in advance of signing on the dotted line," Cunningham said.
It just took a housing crash to figure that out.
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