WASHINGTON–At the same time data is showing a surge in home buying nationally, another development that seems counterintuitive can be seen in different data—home ownership rates are at their lowest levels in 51 years.
According to the Census Bureau, just 62.9% of households owned a home in the second quarter of 2016, a decrease from 63.4% one year earlier. The share of homeowners now equals the rate in 1965, when the Census Bureau began tracking the data.
As CUToday.info has reported previously, the decreasing trend in home ownership can be seen most clearly among Millennial households, those ages 18 to 34, many of whom are already dealing with debts related to student loans and with rising apartment rents that make saving a downpayment difficult. Homeownership rates among Millennials fell 0.7%age point over the past year to 34.1%
As CUToday.info reported here, another surprising factor has also affected the entry-level home market.
Census data show home ownership has declined even as the housing market has been recovering from the 2007 bust that triggered the Great Recession. Ownership peaked at 69.2% in Q4 2004.