A report from the U.S. Census Bureau revealed a surprising truth: the rate of homeownership is at its lowest point in over twenty years. In fact, in Quarter 1 of 2015 just 63.8 percent of people owned their homes. This is a decrease from 64.8 percent in the first quarter of 2014.
This rate is captured in data that the Census collects quarterly and seasonally adjusts. Based on this information, we know that homeownership rates had not previously dropped below 64 percent since 1993. While the rate hit an all-time high at 69.4 percent in 2004, it has been declining over the course of the last decade. Over the course of the last six years homeownership among Americans under the age of 35 has dropped from close to 40 percent to just under 35 percent. It is not only young people who are moving away from home ownership. Among Americans between the ages of 35 and 44, homeownership rates fell from 60.7 at the beginning of 2014 to 58.4 percent at the beginning of this year.
Historically high foreclosure rates have combined with difficulty in obtaining a mortgage to move past homeowners out of the real estate market and keep would-be homeowners in the rental market. However, for those with good credit standing and an intention to buy, the housing market is wide open.
While the rate of homeownership is trending down, mortgage rates remain at historical lows. To learn about how you can take advantage of the current home buying market to get into your dream home, contact the Zwahlen Team.