Military Family Homeownership

Memorial Day has arrived, and I encourage you to spend it in honor of those who made the greatest sacrifice for our country and way of life. As real estate professionals, we are in a position to counsel and support surviving spouses and military families to better realize the American dream in terms of home ownership.

According to the U.S. Department of Housing and Urban Development, 67% of Americans are homeowners. In comparison, however, only 27% of military families own their own home. Service members choose to live on-base rather than purchase a home for economic reasons. The benefits for on-base housing are of greater value than allowances for the civilian housing market and those funds are recycled back into military coffers rather than entering the civilian economy. At first glance, this might appear as a win-win situation. But as friends and family of service members, we should be that third voice and encourage home ownership when feasible.

Junior service members, unfortunately, make the decision the live on-base without consulting real estate professionals out of the belief their housing allowances are insufficient for home ownership. We should highlight that while accepting on-base housing rather than off-base allowances might offer short term benefits, the building of home equity while in service will ease the inevitable transition into civilian life and provide long term stability for military families. The loan assistance programs, tax benefits, professional support networks and opportunities in real estate for active duty service members and veterans are far too numerous to list. Our military does a superb job of training our soldiers to defend us and our way of life. We cannot, however, expect them to find time to properly educate our service members on a individual basis regarding home ownership, their local market, and financial options available to them.

With the National Association of Realtors raising dues and likely increasing their political presence and contributions this year, I believe we should encourage them and politicians to: (1) support increasing housing allowances for service members to make them equivalent in value to on-base housing; (2) expand the Homeowner Assistance Program for upside-down military families forced to relocate in service of their country; and (3) make the 2009 Homebuyer's Tax Credit permanent for military families (as many of you are aware, it expired last month). There is nothing more admirable than serving your country. Lets make it a personal and community goal to get military family home ownership up to 40% by 2015.