Homeownership rates repeated the declines of the previous quarter, albeit less dramatically. The declines we’ve seen in recent quarters are erasing gains we started to see in 2016. The continued decline was more dramatic in older age brackets. In a surprising turn, while their older peers have apparently been pulling back, the homeownership rate in the under-35 age bracket increased.
This goes against the abrupt slowdown in home value appreciation in the entry-level market: As home values exploded over 2017 and 2018, incomes were dwarfed. By 2019, some buyers simply couldn’t save enough for a down payment and pulled back from the market, causing sales and home value appreciation to slow dramatically. Given the affordability challenge of saving for that down payment, this could be a testament to the ambition of younger households to break into homeownership.
While last quarter the Hispanic homeownership rate was the most stalwart — the only racial/ethnic group to see increases — this quarter erased all those gains.
As buyers pull back from the for-sale market, they’re remaining in rental markets for longer. All that recent apartment building, while taking off the pressure within principal cities (building was generally concentrated downtown), it still wasn’t enough to help renters in the suburbs and more rural areas, where rental construction has been missing.
The post Under-35 Bracket Roars Back (Q2 2019 U.S. Homeownership Rate) appeared first on Zillow Research.
via Under-35 Bracket Roars Back (Q2 2019 U.S. Homeownership Rate)
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