The nation's homeownership rate increased in 2017, rising to 63.9 percent, according to the Census Bureau's Housing Vacancy Survey, the first increase in more than a decade. Does this mean the housing market is returning to normal? Not likely, since the advancing age of first-time home buying (the age at which the homeownership rate first surpasses 50 percent) shows no signs of retreating.
Householders aged 30 to 34 were once the nation's first-time home buyers. But their homeownership rate has fallen by a stunning 11.7 percentage points since the overall homeownership rate peaked in 2004—the largest decline of any age group. With a homeownership rate of just 45.7 percent in 2017, householders aged 30 to 34 are no longer the nation's first-time home buyers. That distinction now belongs to householders aged 35 to 39.
Homeownership rate by age, 2017 (and percentage point changed since 2004 peak)
Under age 25: 22.6 (–2.6)
Aged 25 to 29: 32.1 (–8.1)
Aged 30 to 34: 45.7 (–11.7)
Aged 35 to 39: 56.4 (–9.8)
Aged 40 to 44: 61.8 (–10.1)
Aged 45 to 54: 69.3 (–7.9)
Aged 55 to 64: 75.3 (–6.4)
Aged 65-plus: 78.7 (–2.4)
Source: Demo Memo analysis of the Housing Vacancy Survey
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