Here is some positive news for the first quarter of this year in real estate. Homeownership rates in the U.S. show that they have hit their highest in eight years.
In the latest results of the Housing Vacancy Survey (HVS) provided by the U.S. Census Bureau shows that American homeownership is still continuing to grow.
The results show that the homeownership rate increased to 65.3% for the first quarter of 2020 and in the Northeast at 62.4 percent. This is a number that has been rising since 2016 and is the highest it has been in eight years (see graph below):
The National Association of Home Builders (NAHB) have explained:
“Strong owner household formation with around 2.7 million homeowners added in the first quarter has driven up the homeownership rate, especially under the decreasing mortgage interest rates and strong new home sales and existing home sales in the first two months before the COVID-19 pandemic hit the economy.”
The NAHB also show the year-over-year increase in each generational group:
“The homeownership rates among all age groups increased in the first quarter 2020. Households under 35, mostly first-time homebuyers, registered the largest gains, with the homeownership rate up 1.9 percentage points from a year ago. Households ages 35-44 experienced a 1.2 percentage points gain, followed by the 55-64 age group (a 0.9 percentage point increase), the 45-54 age group (a 0.8 percentage point gain), and the 65+ group age (up by 0.2 percentage point).” (See chart below):
The data shows that owning a home is still an important part of the American dream, and I believe that the homeownership rate will continue to increase even though the market has slowed down a bit during this time.
If you’re considering buying a home this year, let’s create a plan that will help you achieve your goal.