Tuesday, October 27, 2015

First-Time Homebuyer Watch: 3rd Quarter 2015

Homeownership rate of householders aged 30 to 34, third quarter 2015: 46.8%

The homeownership rate of households headed by people aged 30 to 34 climbed in the third quarter of 2015 to 46.8 percent, up from 45.2 percent in the second quarter of 2015. While this is encouraging news for the housing industry, a similar uptick occurred in the last half of 2014, followed by a plunge to record lows in the first two quarters of 2015. The rise in homeownership could be nothing more than a bobble at the bottom, or it could signal emerging vitality in the housing market. 

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. It's been stuck there ever since. The new age of first-time home buying is 35 to 39, but even this age group has been slipping toward the 50-percent threshold. The homeownership rate of 35-to-39-year-olds stood at 54.6 percent in the third quarter of 2015—a new record low for the age group. 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 was 63.7 percent in the third quarter of 2015, down from 64.4 percent a year earlier.

Source: Census Bureau, Housing Vacancy Survey

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