The 3rd quarter homeownership rate of householders aged 30 to 34 fell to 46.9 percent, well below the 50 percent threshold and 3.0 percentage points lower than a year ago. Overall, the homeownership rate in the nation as whole was 65.5 percent in the third quarter of 2012 and 0.8 percentage points below the 66.3 percent in the third quarter of 2011.
The homeownership rate of the 30-to-34 age group is the bellwether for the housing industry. Historically, the majority of householders have become homeowners in their early thirties. That is no longer the case as adults in their early thirties--many burdened by student loans--cannot afford to buy a home. In 2011, the annual homeownership rate of the 30-to-34 age group fell below 50 percent (to 48.9 percent) for the first time in the data series, which dates back to 1982.
The homeownership rate of the 30-to-34 age group is the bellwether for the housing industry. Historically, the majority of householders have become homeowners in their early thirties. That is no longer the case as adults in their early thirties--many burdened by student loans--cannot afford to buy a home. In 2011, the annual homeownership rate of the 30-to-34 age group fell below 50 percent (to 48.9 percent) for the first time in the data series, which dates back to 1982.
Most age groups experienced a decline in homeownership between the third quarters of 2011 and 2012. The steepest decline in homeownership occurred in the 30-to-34 age group.
Source: Census Bureau, Housing Vacancy Survey
Source: Census Bureau, Housing Vacancy Survey
1 comment:
I wonder how much of this is ability-based (saddled with student loans) and how much is fear-based (having watched their parents lose their equity over the last five years). I'm guessing the latter represents the stronger motivation to stay out of the housing market.
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