Tuesday, April 28, 2015

First-Time Homebuyer Watch: 1st Quarter 2015

Homeownership rate of householders aged 30 to 34, first quarter 2015: 45.8%

The homeownership rate of households headed by people aged 30 to 34 fell to an all-time low in the first quarter of 2015. Historically, homeownership became the norm in the 30-to-34 age group—rising above 50 percent. But beginning in 2007, the homeownership rate of 30-to-34-year-olds went into a tailspin. In the second quarter of 2011, the rate fell below 50 percent for the first time. In the past year, the homeownership rate of the age group fell by a steep 1.7 percentage points, suggesting we haven't seen bottom yet. 

The new age of first-time home buying is 35 to 39, but even this age group is slipping. The homeownership rate of 35-to-39-year-olds fell to 55.1 percent in the first quarter of 2015—also a record low. Since peaking in the first quarter of 2007, the homeownership rate of 35-to-39-year-olds has fallen by more than 10 percentage points. 

Nationally, the homeownership rate slipped to 63.7 percent in the first quarter of 2015, down from 64.8 percent a year earlier.

Source: Census Bureau, Housing Vacancy Survey

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