![]() In spite of the gains made in the second half of 2015, the home ownership rate in the United States fell during the first quarter of 2016 to a seasonally adjusted 63.6 percent. That’s a mere one-tenth of one basis point higher than the rate’s all-time historic low, which occurred in the second quarter of 2015. A major contributing factor to this low rate of home ownership among young Americans is a combination of high student debt, tight mortgage standards, and rapidly rising home prices. Simply having a job no longer automatically translates to home ownership for young people today. The home ownership rate for people aged 25 to 34 is nearly 10 percent lower today than a decade ago. Furthermore, among all of today’s buyers, first-time homebuyers comprise barely 30 percent, a figure that has traditionally been closer to 40 percent. For multifamily real estate investors, however, these numbers are good news. Not only is household formation increasing, but a full two-thirds of new households are renter households, and just one-third of such households are owner-occupied homes. Nationwide, homeownership is highest in the Midwest and lowest in the West.
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AuthorAn experienced real estate investor and co-founder of 37th Parallel Properties in Richmond, Virginia, Chad Doty has established himself as a leader in commercial multifamily real estate. Archives
January 2017
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