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?
- 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
- 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
- both of these factors have improved in recent years
- in particular, Millennials, who shunned buying homes, have started to become more interested in home buying
- 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