Homeownership Trends Upward as U.S. Loses Renter Households

Rising wages, loosening credit standards and demographic shifts are all creating momentum for owning rather than renting, and have helped bolster demand for homes in the last year.

  • The homeownership rate rose last year for the first time in 13 years. That marked a turning point in the recovery, during which home prices have risen sharply and credit standards were initially very tight.
     
  • Demographics trends also increasingly favor homeownership, as members of the large millennial generation are entering their early to mid 30’s.
     
  • The homeownership rate for households headed by someone 35 years or younger rose a full percentage point from 34.3% in the first quarter a year ago, the fifth consecutive quarter it has gone up on an annual basis.
     
  • The U.S. added 1.3 million owner households over the last year and lost 286,000 renter households; which could pose challenges for apartment landlords, who are bracing this year for one of the largest infusions of new rental supply in three decades.
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