Easy Chicken Little: Homeownership Rates Are NOT Crashing

Easy Chicken Little: Homeownership Rates Are NOT Crashing | Keeping Current Matters

The Census recently released their 2015 Q1 Homeownership Statistics, and many began to worry that Americans have taken a step back from the notion of homeownership.

The national homeownership rate (Americans who owned vs. rented their primary residence) increased significantly during the housing boom, reaching its peak of 69.2% in 2004. The Census Bureau just reported the first quarter of 2015 ended with a homeownership rate of 63.7%. Many reported on this and began to question Americans’ belief in the ideal of homeownership as a major part of the American Dream.

Everyone Calm Down…

It is true the homeownership rate has fallen over the last several years. However, if you look at the national rate over the last 30 years (1984-2014), you can see that the current homeownership rate has returned closer to historic norms. The 63.7% rate is less than a percentage point under the rate in 1985 and 1995.

Homeownership Rates Over 30 Years | Keeping Current Matters

What Will the Future Bring?

In a Housing Wire article this week, Ed Stansfield who manages the housing market research at Capital Economics said:

“The homeownership rate fell further at the start of the year to a 22-year low of 63.7. However, with credit conditions now loosening and employment set to continue growing strongly, we suspect this long downward trend may not last for much longer.”

In the same article referenced above, Jonathan Smoke, chief economist for realtor.com, explained why the homeownership rate will probably begin to increase:

“The homeownership rate is likely to bottom this year or next not far from where we are now. By historical patterns, the rate could indeed go up. The simple math behind what it costs to rent versus buy shows that if you can afford the down payment and qualify for a mortgage, it is cheaper to buy rather than rent in 80% of the counties in the US now.”

Bottom Line

With interest rates and prices still below where experts predict, perhaps we should get together and evaluate your ability to purchase a home.

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About abolastig

Antonio Bolastig is one of the most dedicated and committed real estate agents in the nation. There are many qualities and skills that go into being an excellent real estate professional - integrity, in-depth community and market knowledge, marketing savvy, effective negotiation skills and a high-quality professional network, all of which are hallmarks of how Antonio work. That said, in Antonio''s experience as a real estate professional, hehas also found that providing the very best service is essentially about putting his clients first. This means keeping himself accessible, being a good listener as well as a good communicator, and responding quickly to his clients'' needs. This "client first" philosophy has always been his approach and it requires him to continually improve his skills and ways of doing business. In addition, Antonio has found that the latest technologies are enabling him to do everything he has always done, only much more quickly and efficiently. They''ve also helped him to extend the range of services he provide to his clients. Antonio is backed by Realty Mark LLC, recognized as a leading real estate company with the most productive sales force in the industry. So when you decide that you''d like to buy or sell a home, please contact Antonio Bolastig.
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