Home Ownership Rate in the United States increased to 63.50 percent in the third quarter of 2016 from 62.90 percent in the second quarter of 2016 which it was the same as in 1965, when the US Census started tracking the metric. Home Ownership Rate refers to the percentage of homes that are occupied by the owner.
What factors drive Home Ownership rate?
There are several factors that will drive Home Ownership Rate, here are just some of those:
• Income growth
• Higher rents and housing costs
• Constrained credit
• Loss of confidence in wealth through Home Ownership
Nevertheless, owning a home is a financially savvy move because builds wealth over time, and in general makes “cents”, and indeed there is no place like Home.
We are now seeing a changing trend in the Real Estate Market. Rising rental prices are encouraging the millennial’s generation to experience a nudge toward homeownership, and reports showed that First-time buyers are now at the front line of buying a home. The Zillow Housing Confidence Index also said that about 5.2 million renters are expected to purchase a house this year, up from 4.2 million a year ago. Where job growth is strong, the millennial who were once renting are ready and willing to buy.
The United States has about 75 million millennials — people born from 1980 and 1995 — and expected this year to surpass the baby boom generation according to a report released by the Pew Research Center. Buying a home can be terrifying, and even though this is a big step, many of us have taken it and enjoyed the comfort and security that homeownership has provided for our loved ones and ourselves.
Sandy Flores Broker/Realtor (714)963-7462
Leading your way Home!