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HOMEOWNERSHIP
RATE DIPS TO LOWEST
LEVEL IN ALMOST TWO
DECADES
Homeownership in the United States lost
a little more ground last quarter, declining to
a new 19-year low as consumers—particularly
young adults—continue to grapple with debt
and difficulties obtaining credit.
According to an estimate from the Census
Bureau, the U.S. homeownership rate was
64.7 percent in the second quarter, a decrease
of 0.1 percentage point from the first quarter's
previous low and 0.3 percentage points from
the same time last year. It was the lowest rate
since 1995.
Homeownership continued to slide among
the millennial age group, who find themselves
more burdened than other groups by high
debt, tight credit conditions, and limited job
prospects. e percentage of young adults who
own their homes was 35.9 percent last quarter,
down nearly a full point from last year.
As housing trends move in a healthier di-
rection, one of the biggest headwinds has been
a lack of activity among first-time homebuyers,
who historically account for 40 percent of sales
activity, according to the National Association
of Realtors (NAR). rough this year, that
share has hovered around 28 percent.
While today's young adults have so far
been inactive compared to historical norms,
a recent report from NAR suggests a number
of markets, particularly those in the Midwest
and West, are likely to see more activity from
millennials as labor market conditions and
home prices create a more favorable market for
buyers.
As millennials age and start to hit their
own life milestones, the group expects to see a
resurgence among younger homebuyers.
"Millennials will eventually settle down,
trade their roommates for spouses, and want
to raise a family," commented NAR President
Steve Brown on the study. "As long as median
income continues to support purchasing power
in most areas, the demand and opportunity
will be there for Millennials to purchase their
first home with guidance and insights from a
Realtor."
