Prediction: homeownership rate will continue to drop through 2025

One analyst suggests the falling homeownership rate will continue to fall:

Burns predicts the homeownership rate will continue to fall through 2025. Which means that millennials will be renting for a lot longer than their parents’ generation did.

In 2004, when the overall homeownership rate peaked at just under 70 percent for all age groups, those born in the 1970s were 25–34 years old, moving out on their own and forming new households…

Today, with mortgages harder to get and memories of the housing bust fresh in buyers’ minds, the homeownership rate among 25–34-year-olds has fallen to just 39 percent…

Based on his estimates, the overall homeownership rate will fall to just 60.8 percent by 2025, the lowest since the mid-1950s.

As noted in the last paragraph of the article, there will still be more homeowners than before (because the population of the United States continues to increase) but the percentage of Americans owning homes will drop. If the rate matches that of the mid 1950s, we would be back in a early suburban boom era except it would be hard to imagine a similar new boom on the horizon.

2 thoughts on “Prediction: homeownership rate will continue to drop through 2025

  1. Pingback: Housing anxiety in America will lead to what kind of action? | Legally Sociable

  2. Pingback: Trying to predict the 2017 housing market | Legally Sociable

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