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.