Economist Mike Walden: Is Home Ownership Turning Around?

The percentage of households owning homes dropped significantly during the Great Recession and continued even after the economy recovered.  Now in the last two years home ownership has made a modest comeback.  What are the reasons?

  1. home ownership rate in the country peaked at almost 70% in 2004 and declined to 63% in 2016, but has rebounded to 64% since then
  2. two big reasons for the decline: (1) the Great Recession and its fallout which caused many owners to lose their homes and which tightened standards for acquiring a mortgage and (2), the reduction in the investment value of homes
  3. both of these factors have improved in recent years
  4. in particular, Millennials, who shunned buying homes, have started to become  more interested in home buying
  5. interestingly, two groups that have higher than average home ownership rates –   those with college educations, and those with children, have not been pushing the increase in homeownership