Monday, January 31, 2011

Update on a Mystery

The homeownership rate of the youngest householders, under age 25, remained elevated in the fourth quarter of 2010, according to statistics released by the Census Bureau this morning. In fact, the homeownership rate of the age group actually increased slightly--rising from 22.3 percent in the third quarter to 22.9 percent in the fourth quarter. The stability in the homeownership rate of the youngest adults has yet to be explained.

Meanwhile, the homeownership rate of householders aged 35 to 39 plummeted to 60.5 percent in the fourth quarter--close to the record low for the age group and down more than 6 percentage points since their homeownership rate peaked at 66.6 percent in 2005. Among age groups, householders aged 35 to 39 have seen their homeownership rate decline the most since the collapse of the housing bubble. Is this because they are losing their homes to foreclosure or because younger people aging into the 35-to-39 group are unable or unwilling to buy homes?

Source: Census Bureau, Housing Vacancies and Homeownership, Fourth Quarter 2010

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