NC State Ag Economist Dr. Mike Walden – “Will Home Buying Rebound?”

 

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program asks if home buying will rebound.  Mike, the percent of households who own a home has been sliding for a decade.  This goes against tradition where most people aspired to own rather than rent.  Is the decline in home-owing part of a long-term trend, or is it temporary?

Mike:  Summary Answer

  1. Great question – one that builders are increasing asking
  2. Could argue temporary – due to slow recovery from the Great Recession, continuing stigma from the housing crash when values fell, and tighter lending standards
  3. But others see part of a long-term trend – slower household growth, different attitude about how to live among Millennials, and smaller household sizes
  4. Recent forecast of homeownership rates showed – at best – rate continuing at current levels of 65%, but most forecasts indicating lower rates – maybe going under 50% in 20 years
  5. One of the most important trends to watch
  6. I’m MW

Mary:  And I’m Mary Walden for the North Carolina Cooperative Extension Service


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