Highest US Homeownership Rate in 8 Years
The past 2 months have been a somewhat a whirlwind for all of us. With government stay-at-home orders, our lives have been set to pause. We have transitioned to working from home and becoming an educator/daycare for our kids. It is a whole new reality for us. On the other hand, we have found a sense of comfort in spending time at home with our families. We have created memories with our kids. Despite the chaos and uncertainty, one thing is certain. The feeling of security that comes from owning a home for our families.
The U.S. Census Bureau has provided a recent Housing Vacancy Survey (HVS) that shows how Americans place immense value in homeownership. This value is consistently growing. The survey indicates that homeownership rate increased to 65.3% for the first quarter of 2020. This rate has been on the rise since 2016 and is currently the highest in 8 years.
Why is the rate increasing? The National Association of Home Builders (NAHB) explains:
“Strong owner household formation with around 2.7 million homeowners added in the first quarter has driven up the homeownership rate, especially under the decreasing mortgage interest rates and strong new home sales and existing home sales in the first two months before the COVID-19 pandemic hit the economy.”
The NAHB also emphasizes the year-over-year increase in each generational group:
“The homeownership rates among all age groups increased in the first quarter 2020. Households under 35, mostly first-time homebuyers, registered the largest gains, with the homeownership rate up 1.9 percentage points from a year ago. Households ages 35-44 experienced a 1.2 percentage points gain, followed by the 55-64 age group (a 0.9 percentage point increase), the 45-54 age group (a 0.8 percentage point gain), and the 65+ group age (up by 0.2 percentage point).” (See chart below):
The American Dream is often intertwined with homeownership. COVID-19 may have slowed our lives however it has also shown us how grateful we are to be homeowners. The pride we experience that we can provide a safe shelter for our families. Needles to say the emotional value of homeownership is very apparent during these times.
The South Florida Real Estate Experts at Prestige Waterfront Realty can help you reach the American dream of homeownership. Call us today 954-830-7000.