Why Are States Investing In Future Homeowners?
Across the country, states are stepping up to the plate to help future home buyers through programs that help them save the money they need, tax-free, to purchase their first home.
It turns out these programs help current homeowners, too.
If you’re a homeowner — or in the process of buying a home right now — you know just how hard it can be to save enough for the down payment, closing costs and other fees associated with purchasing a home. Student loans, credit card debt and flat wages can all make this task worse.
To address this problem, states like Alabama, Colorado, Iowa, Minnesota, Mississippi, Montana, Oregon and Virginia have already created programs that help these first-time homebuyers save the money they need, tax-free, to purchase their first home
And, states like Louisiana, Maryland, Michigan, Missouri, New York and Pennsylvania have considered or are still considering legislation to make these programs a reality in their state, too.
Why are states focusing on this? Because not only does home ownership build wealth, but it also strengthens communities, provides stability and helps individuals and families create memories.
These state-issued programs also help boost home sales in their states, which helps improve the economy and in turn, allow thriving businesses to create more jobs in flourishing communities.
And, a boost is needed, especially in regards to first-time home buyers. A 2017 survey by the National Association of REALTORS® shows that first-time buyers are a shrinking segment of home sales. Last year, the share was 32 percent, which is well below the long-term average of 40 percent.
To help first-time home sales, some of these states have even gone so far as to allow parents and grandparents to contribute to these savings plans to help their children and grandchildren become homeowners faster.
Read the stories below to learn more about the movement to create first-time homebuyer savings accounts across the country and why states are investing in future homeowners.
Read more about first-time homebuyer savings accounts:
- New Program Would Help Pennsylvanians Save For A Home
- Helping First-Time Home Buyers in Oregon
- Minnesota Introduces First Time Homebuyers Savings Accounts
- New Option in Iowa to Save for a Down Payment for a Home
- Missouri Passes Bill To Create the First-Time Homebuyer’s Savings Plan
- Buying your first home in Mississippi is now a whole lot easier
- A New Way to Save For a Home in Alabama Nearly a Reality
- Virginia REALTORS® Promote First-Time Homebuyer Accounts