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Research and statistics show that the rate of home ownership is actually declining at a steady pace. It is no longer the most important goal of many young professionals; there are now alternatives to traditional home ownership. The rate of ownership has been in steady decline since the global economic recession.  To fully understand why this has happened, it is essential to understand the history behind the scenes:

 

Home Ownership

Early humans were nomads and travelled wherever the food supply was; this often meant tracking and moving with the most common food sources. The only trace of these people was not empty houses but simply paintings on cave walls. Thousands of years ago this habit died out in the majority of cultures and humans started to lay down roots. Ownership of land was defined by those who were strongest and this eventually led to a leadership system, rules, regulations and primitive policing.

Population Explosion

Once humans were able to establish their roots it became possible to have several children per household. The fertile land could support the larger families and the children provided valuable additional labor. Eventually these extending families became small communities and then towns and even cities. The whole process revolved around the strongest families ruling the roost and passing on this ownership through their descendents.

Power, Rich and Poor

As the population exploded and the leaders gained more and more land they began to share these with friends and family; in exchange for their allegiance. This enabled the rulers to charge rent and levy taxes on the common landowner; these people were not in a position to do anything about it. The definition of areas and even countries did lead to a greater amount of trade between different kingdoms and the general wealth of most citizens increased. This was also the time that there became a need for tradesmen as well as laborers. The most successful of these tradesmen became rich enough to purchase houses; they did not own the land but they did own their own property – this was the first example of house ownership by the common person.

Machines

 The industrial revolution allowed many people to give up their laboring and become educating; applying themselves to new lines of work. In the 18th century, many lower class people moved into middle or even upper class positions thanks to the wider availability of work. This brought the opportunity to purchase a wide variety of material possessions, including houses.

Mortgages

As modern society developed and more people were able to afford their own housing, mortgages were brought into being. These gave nearly everyone the ability to purchase a house and pay a deposit and affordable monthly payments. The down side of the availability of these mortgages is that many people are tempted and do take out loans which are far too high for them to reasonably afford; this can cost them their house.

Decline in Ownership

The ability to borrow more than it was possible to repay became evident in the housing crash, when many people lost their homes. There was a large, almost instant decline in home ownership. However, since then, as the property market has recovered many people have found their way back onto the ladder.  Statistics show that the rate of ownership is still declining.

The Reason for this Decline

The reason is not due to a decrease in ownership! In fact it is to do with the way that ownership is recorded. Ownership is defined by the number of households which own as opposed to rent their property. However, this calculation does not take into account the number of people living in a household. If there are ten households and all of them own their own house then ownership rates are one hundred percent. If, one person moves out of each of these houses and rents then ownership rates will reduce to fifty percent of the population; equal with the percentage of people renting. 

Of course, in reality the rental market has increased but the number of homes and apartments in Turkey which are owned has not decreased, it has stayed the same. The economic crash has made many people more wary about purchasing too soon and many will leave home and rent before buying; to be sure they are capable and can afford to live on their own. These people will be likely to purchase within the next few years and the figures are then likely to show an ownership boom.

The housing market is not actually in decline, it is stronger and more stable than in recent years and the ownership figures will increase although it may be time to look at a better way of recording these figures.