It's a particularly compelling question for those who dream of owning a home but cannot due to financial constraints. What is the profile of the average homeowner in the United States? The U.S. Census has reported that immigrants to our country have lower rates of homeownership than born-and-bred Americans. It's interesting to note, however, that as many of these immigrants obtain their United States citizenship, their rates of homeownership increase. In fact, a report by the Census Bureau states that in 1996, two-thirds of immigrants who obtained U.S. citizenship were homeowners, as compared to one-third of immigrants who were still awaiting citizenship.

Our initial reaction to this statistic would be to say that immigrants who have obtained their citizenship have been in the United States longer, are more established and are thus more likely to be in the financial position to own a home. Surprisingly, however, the amount of time an immigrant has spent in the United States doesn't seem to be a factor in whether or not he or she is a homeowner. A 1997 report by American Demographics stated that while 36 percent of immigrants who moved to the United States during the 1990s and who had also obtained their citizenship owned their homes in 1996, while just 15 percent of immigrants still awaiting citizenship who moved to the United States during the same period owned their homes. The same report added that while noncitizens who immigrated here before 1950 were far more likely to own their own homes (approximately 60 percent) than noncitizens who more recently immigrated here, the gap still exists between noncitizens and citizens who arrived here before 1950 (nearly 80 percent of them were homeowners).

A recent and interesting trend is the increasing rate of single people who opt to buy their own homes. Both women and men are marrying much later in life, and many of them develop successful careers in the meantime. They have the resources to buy homes and develop good credit, and many of them have grown tired of increasingly higher rents, sharing common walls with noisy neighbors, stingy landlords and other hassles of apartment life. While the percentage of single homeowners is indeed rising, however, married people continue to dominate the homeowner profile. Whether you were born in the United States or abroad, have U.S. citizenship or not, if you're married, homeownership appears to be more within your reach.

Today, more than ever, Americans are allocating a significant percentage of their earnings to their homes -- some 32 percent of their annual earnings in 1997, in fact. They spend much more on their living environment than renters, some of whom have the attitude that their surroundings are merely temporary (and, of course, renters are limited as to the modifications they can make to their living environment, bound by their leasing agreements). Another American Demographics report found that for every dollar spent by a renter, homeowners spend $1.50. While homeowners spend more of their earnings on their living environment, however, they still come out ahead of renters. Because rents continue to rise at a faster rate than the cost of owned housing -- particularly in large cities -- renters spend nearly 40 percent of their annual earnings on their housing, whereas homeowners spend approximately 30 percent of their earnings on housing.

That's not to say that homeownership is economical; property taxes continue to rise. Property taxes have increased exponentially during the last portion of the 20th century, and they represent one of the largest financial headaches for homeowners. The cost of utilities continues to decrease both for renters and homeowners, but homeowners are faced with the burden of increasing water bills and other government-provided services such as trash collection and waste/sewer fees. Homeowners also spend more money on furniture and other accessories for their living environments, which are on average more spacious and can accommodate more accoutrement (and more spending). Both renters and homeowners are on the lookout for homes that are wired to accomodate high-speed Internet access, and an increasing amount of their budgets is going to support technological luxuries such as home computers, HDTV, surround sound, cordless and cellular phones, and more. And surprisingly, the fastest-growing segment of this "techie" market falls within the ages of 45 to 54. This segement of our population spent more than 60 percent on computer-related equipment than other age groups in 1997. (The 35 to 44 age group ranked second in terms of computer spending in 1997). And believe it or not, consumers ages 55 to 64 came in third place in terms of computer-related expenditures in 1997, beating out Gen-Xers aged 25 to 34.

It appears that not only are U.S. consumers spending more on their home environments; but they're also wiring them to accommodate their increased interest in all things technological. Technology has expanded from the boardroom to the bedrooms and living rooms of America. Supported by the one of the strongest economies the country has seen in recent years, more consumers are finding they can have it all -- a home and the technology that supports their lifestyles. Those who have to make a choice between larger or more decorative digs and their technological toys are often choosing the latter. Technology has found its way to the top of Americans' priority list, and even those anti-Web diehards of our society -- namely, those who weren't born in the computer age -- are warming up to the idea of logging on and tuning into the Web's infinite possibilities.

Published: April 23, 1999

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