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Homeownership Rate Continues Slide
Drops To Its Lowest Level Since 1965


The U.S. Census Bureau recently released its second quarter Housing Vacancy Survey, and the results show that homeownership declined to 62.9 percent, a cut of
60 basis points.

U.S. Census Bureau data shows that the rate of homeownership is now at its lowest level since 1965, the year it began tracking this metric.

In its second quarter Housing Vacancy Survey, the Census Bureau determined that the overall rate of homeownership declined to 62.9 percent, a drop of 60 basis points, compared to the first quarter. The homeownership rate fell in the first quarter as well, compared to the last three months of 2015.

The Census Bureau places homeowners into five groups, according to the age of the head of each household. What it found was that homeownership fell in four of those five groups, and that the drops in at least of three of them were rather substantial.

The homeownership rate for Generation X (ages 35-44) was the only one of the five groups that increased, and that was just by a mere 0.3 percent, improving to 58.3 from 58.

Conversely, the 65-and-older bracket fell to 77.9, from 78.5. People in the younger-than-35 group dropped to 34.1 from 34.8, and owners age 55-to-64 declined to 74.5 from 75.4. The last group, 45-to-54, fell to 69.1 from 69.9.

Millennials, or teenagers and 20-somethings, have a lot to do with the steady drop in homeownership. So says Professional Builder. Why?

"They have been delaying home buying at record levels and have the lowest ownership rate of their age group in history," Professional Builder said.

"Millennials have also put off major life choices such as marriage or parenthood until later in life, which are two of the primary reasons people make the decision to purchase a home."

While the homeownership rate is declining, rental markets have been skyrocketing, again because more and more Millennials view renting as a viable long-term option, Professional Builder said.

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November 17, 2019, 5:51 am PDT

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