For Young Couples, an Indiana Home Is...

• Within their limited means
• In a growing community
• Near jobs
• Near good schools

In 2000, according to the U.S. Census Bureau, there were 1.25 million Hoosiers between the ages of 20 and 34 years old. For most of us, that's a point in our lives when we're just starting out.

Though homeownership isn't necessarily for everyone, for many young people it's still a central part of the American Dream. Understandably, young homeowners want to live near where they work, and in safe neighborhoods with good schools.

And achieving homeownership isn't just important to young people--it's important to the entire community. Because according to a 2000 report from the National Association of Realtors, first-time buyers accounted for 42 percent of all home sales. Over half of those buyers were between the ages of 25 and 34.

Home buying leads to trips to the hardware store, new furniture and appliances, improvements and additions, property taxes, insurance and the like--and that's an important source of income for countless businesses, organizations and people.

It also leads to the accumulation of wealth that can lead to a better life. According to the Federal Reserve's 2000 Survey of Consumer Finances, the median assets held in home equity by owners was $90,000. That's about 20 times more than the median assets of renters.

And Yet...

• Nearly 2 million Hoosiers rent their homes (36 percent of people with disabilities do).

• Over 239,000 families pay more in rent than they can afford (over 30 percent of their income).

• When people pay too much in rent they can't accumulate enough of a down payment to buy a home with an affordable mortgage.

Clearly, home ownership is a stepping-stone for young people and their families. It also represents a significant source of revenue for the entire community. For young couples hoping to get ahead, the ability to afford that first home--house or apartment--is critical.

The ability to own a home--and begin accumulating wealth--may also be a deciding factor to young professionals who face choosing between accepting a job in Indiana versus other, higher cost-of-living areas where homeownership is well out of reach.

So down payments that bring mortgages within the limited budgets of young people are a must--without them, hundreds of thousands of families must choose between renting or a mortgage they ultimately can't afford.

And that's a choice that comes with a very high cost--in 2005 it helped Indiana achieve the second highest foreclosure rate in the United States.

Click here for information on buying a home or finding affordable rental housing.