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Rising prices set back young would-be buyers

July 24, 2005

The idea of owning land was a fundamental aspect of the country's foundation, said Raphael Bostic, an economist and director of the real estate development program at the University of Southern California.

Price inflation is only one reason the median age is rising. Adults are staying in school longer and delaying marriage and children, Bostic said.

At the same time, many prospective owners aren't waiting for kids or marriage.

Homeownership is seen as a key to "controlling your own destiny and having your own castle," Bostic said.

For the individual, homeownership is often a personal goal.

Aurela Sicard, a treasury analyst at a heath care firm, set a goal of buying a house by her 30th birthday. In April, after nearly a year of failed offers, Sicard buy a home in Oviedo.

Sicard not only hit her target -- she turns 30 this month -- but she is also ahead of many of her peers.

For Alex Paradiz, 26, homeownership is a natural step in his life.

"You graduate, you get a job, you get a home," said Paradiz, an Orlando engineer who bought his house in September. "I have a sense of accomplishment. It's a reflection of who you are."

Of course, a home is more than a source of pride. It's also a source of equity.

"It's the largest personal expenditure most of us ever make," said Lois Vitt, a financial sociologist and director of the Institute for Socio-Financial Studies in Virginia. "It anchors our entire financial future."

Many twenty-somethings are seeing the value.

Last year, Heather Patterson bought a home in Winter Park for $128,000. It's now worth about $190,000.

Already, Patterson, a 24-year-old engineer, has her eyes on something else.

"I've been thinking about buying another as an investment," she said.

Leslie Marrero, Yarely Marrero's cousin, is only 20 but pines for a house.

Leslie Marrero, who works in customer service for a telecommunications firm, started looking last year but was limited by her income. She has since resumed her search and is looking into foreclosed houses.

"If you rent, basically you're throwing that money away that you could be spending on your own house," said Leslie Marrero, who pays $700 a month for an apartment near the airport.

Ellie Gagaoudakis and her boyfriend also were searching for a house this year.

But Gagaoudakis, a kindergarten teacher in Fern Park, found that homes near work were too expensive. A typical mortgage would consume half of her monthly income.

Discouraged, they have decided to continue saving, while remaining in their apartment.

"You're starting from scratch, and it's very competitive," Gagaoudakis said.

Of course, not everyone is yearning to own, particularly those who do not see themselves settling in Orlando.

Kimberly Kruse, 24, pays $900 a month for an apartment in Orlando. A doctoral student at Argosy University in Tampa, Kruse plans to take an internship when her program ends.

"For me, [renting] makes sense because I don't know where I'm going to be next," Kruse said.

Plus, her apartment offers appliances, such as a washer and dryer, that she might have had to buy if she bought a home.

Less disposable income is one irritation a lot of new homeowners face.

"I've gone from shopping for shoes on the weekend to shopping for fertilizer for the lawn," said Sicard, the Oviedo homeowner.

But it's worth it, she said. Sicard no longer hears other tenants walking around in the apartment above her. Her kids enjoy having friends over.

"It's a place of my own," Sicard said.

Thomas, the Orlando apartment renter, knows what a difference a house can make.

For most of his life, Thomas lived in rented condos, apartments or townhouses. But when he turned 18, his parents bought a house.

"For my mother it was a miracle, a blessing, something she always wanted to do," he said.

For Thomas, it was a symbol of freedom. He could have a pet without his parents paying extra rent. He could jump into the family pool. He even enjoyed such chores as mowing the lawn.

Thomas looks forward to mowing his own lawn one day.