2020 has been quite the year. From COVID-19 to historically high unemployment rates and finally the economic recession. Despite all these challenges, the homeownership rate rose in quarter 2 of 2020. Americans are still confident about buying a home even during the crisis.
The U.S. Census Bureau said:
“The homeownership rate of 67.9 percent was 3.8 percentage points higher than the rate in the second quarter 2019 (64.1 percent) and 2.6 percentage points higher than the rate in the first quarter 2020 (65.3 percent).”
One of the main reasons for increase in homeownership is the low interest rates. Rates are at an all time low and as a result homeownership is more affordable. This encourages more and more people to enter the real estate market.
According to Ralph McLaughlin, Chief Economist for Haus:
“Mortgage rates are the icing on the cake for households that were thinking about buying…They found an unexpected opportunity during the worst economic downturn America has seen since the Great Depression.”
Another encouraging factor is the need for more space as many are working virtually from home due to COVID-19. Many of the homebuyers are younger.
Odeta Kushi, Deputy Chief Economist at First American states:
“Big jump in the homeownership rate today, mostly driven by younger households. We saw a spike in the number of owners, and a decline in the number of renters. This is the highest rate of homeownership since 2008.”
Growth in homeownership is great for the economy and the real estate market. If you are thinking of becoming a homeowner now is the time. Let's connect so we can help you. Call the experts at Prestige Waterfront Realty at 954-830-7000 or email Tegov@AskPWR.com. Build your family's wealth by becoming a South Florida homeowner.