By Justin Markofski
Northside Planning Council

An interview with Jean Armendariz-Kerr, broker owner of Mode Realty Network, past president of the Realtors Association of South-Central Wisconsin (RASCW), and Regional Housing Strategy (RHS) Advisory Committee member.

Q: Please tell us a little about yourself and your relationship(s) to the housing industry and homeownership.

I’m a first-generation American, and my family worked hard for a long time to come to this country for the opportunities here, and that includes the proverbial American dream of buying a home and getting an education. I had the privilege of growing up with modest but stable housing and saw what that meant for my family as compared to the experience of some of my peers. Buying a home sparked an interest in working in the industry — first as a real estate agent beginning in 2000 and then later as an attorney and broker as the years went on.

Being in the industry for over 20 years, I have had a front-row seat to the impact that ownership has on our individuals, families and the community at large, and I’m very afraid of what the effects of the current housing shortage will mean for our young people and folks who haven’t been able to participate in home ownership yet. I have grown kids who are facing a lot of headwinds that didn’t exist when I was their age, and I fear what that means for the stability and vibrancy of our community at large.

Q: Can you share more about the Dane County Regional Housing Strategy Group?

The Dane County Regional Housing Strategy Group is a joint effort between our region’s public, private and non-profit stakeholders to establish suggested strategies and action items that our region can use to combat the runaway cost of housing at all income levels and housing types. We’ve spent over a year learning from each other, sharing information and ideas, and developing multifaceted strategies that will help ensure that safe, affordable, and equitable housing can exist in our region. Solving this crisis will require a variety of tactics, and we have to look to all the various actors in our community to craft an approach that meets the needs of all our residents. By combining our efforts and competencies, we can create recommendations that hopefully lead to better outcomes.

Q: Is homeownership for everyone? What are some of the benefits you see of owning a home? 

I believe in homeownership, but it isn’t always for everyone. Purchasing a property requires commitment, and owning and maintaining a property takes time and money. If people move frequently or expect to leave the area within a few years, it may be better to wait until you find a community you wish to live in for the long term.

However, having control over your housing generally provides tremendous security against otherwise continuously rising rental rates and cost of living. It eliminates the possibility that your housing can be taken from you through a nonrenewal of your lease. While the cost of a mortgage payment is often higher than rent at the beginning, usually by the time someone has reached the 4 or 5-year point, rent inflation will have caught up, and rents will have surpassed your mortgage payment. Most people in the US have 30-year fixed mortgages, meaning the only things that change in your monthly payment are the property taxes and insurance; usually those change at a much smaller rate than rent.

Beyond providing stable housing costs, ownership is also an opportunity to gain equity over time. When you pay rent, your payment goes entirely to the costs of the property and potentially cash flow to the landlord. When you own your home, a portion of your payment goes to reducing what you owe on the property. In addition, our housing market has appreciated on average around 6% every year in the Midwest according to the US Census, which has tracked it since the 1960s. Some ups and downs happen in the housing market, but as a long-term investment, it is very consistent — and you get to live in it.

When it comes to generational wealth, the Census also tracks people’s net worth, and people’s homes represent 62% of the typical household’s net worth. In the US, a median homeowner’s net worth is a staggering 80 times higher than the median renter’s net worth, which means fewer opportunities overall for that renter household.

Q: What would you say to someone who feels homeownership is out of reach or impossible for them?

If becoming a homeowner is a goal, there are concrete, actionable steps a person can take to make that dream a reality. In our region, there are a range of different types of programs designed to help people become homeowners. These programs have broad support because global studies have shown that communities with high rates of home ownership experience more economic growth, have lower rates of crime, and have better child educational outcomes.

Becoming a homeowner is absolutely possible, and it helps to find great teachers and advocates to help you get there. Coming to this upcoming workshop can help you do that.

Q: Can you share more details about the upcoming free community workshop on homeownership and who the target audience is?

Our upcoming event will give people the essential information they need to make an informed decision about whether or not becoming a homeowner is right for them. It is a no-pressure environment where one can learn about the basic steps and considerations and the potential costs that might be associated with making it happen. There will be experienced folks in the industry on hand to answer questions and provide a road map to start.

Providing educational opportunities to the public is one of the important action items that grew out of the public input we received during our many Housing Strategy Group meetings, and we are excited to present it so early in 2024.

Q: If a person is unsure if they should come to this free homeownership workshop, what do you want to say to them to encourage them? 

This event is a no-commitment opportunity to hear from some of the local housing and finance experts who are here as volunteers to give a straight talk — no sales pitch — about home ownership and how to attain it. Coming to an event like this allows you to hear the basics and get answers to the questions you and others might have about the process. It is a small investment of time that can be transformative for your future financial goals.

Q: Is there anything else you want to say related to this workshop and the subject of homeownership here on the Northside of Madison and in Dane County?

Dane County is a wonderful place to live, which is why we have had such an influx of new residents in recent years. This appeal has kept our housing values strong throughout generations, and this workshop can be your opportunity to learn how to have a personal investment in the success of our region.