The Decline in Homeownership: It Could Have Been Worse

Between 2000 and 2010, the nation's homeownership rate fell from 66.2 to 65.1 percent—a 1.1 percentage point decline. The decline could have been worse, say Fannie Mae researchers who analyzed census numbers to determine how much of the drop in homeownership during the decade was due to the changing age structure of the population and how much was due to declining homeownership rates within age groups. 

The researchers show that the aging of the population actually boosted the nation's homeownership rate by 1.7 percentage points during the decade, since older Americans are more likely to own a home. At the same time, the decline in homeownership rates within age groups subtracted 2.8 percentage points from the overall rate. Their conclusion:

"Had it not been for shifts in the distribution of the population toward older age groups, the overall homeownership rate would have declined by 2.9 percentage points betwen 2000 and 2010 rather than the 1.1 point decline actually observed."

Source: Fannie Mae, A Bad Decade for the American Dream