Home Ownership Rate Actually Increasing...?

Question

Thought this was interesting. Virtually everything in the news is saying there is no hope for home ownership, everyone is going to be a renter, etc., but the overall home ownership % nationally vs. renter % is actually up.

It's up compared to the 60's, 70's, 80's and most of the 90's to about 65% Nationally.

While housing is objectively more unaffordable with current prices and interest rates, when will this be reflected in the overall home ownership data?

What do you guys think?

Justin Loveland · Answer

Had 3 different tenants in 3 different units purchase homes this year. They're buying in up and coming areas, very smart. The amount of homes we need to keep up with normal demand on the construction end is staggering. We need 2.2 million homes built and we're on pace for 1.2-1.3 million this year across the country. This doesn't include the 14 years we've underbuilt for normal demand. On the rental end where we live, there's more people needing rental housing than housing available and I just saw that with 7 applications on 1 unit. We can't build as much in the northeast, so as long as there's demand on a Micro scale in the northeast values will hold and young people should be purchasing a long term fixed payment asset.

Justin Loveland · Answer

The local rules and regulations for building in our area is what is keeping the volume of building low. Towns are not wanting Density or Sprawl. Good for values, not good for housing availability.

As far as the rentals, we've rented everything out again with quality tenants. I'm just really happy to see young people making smart decisions.

Brian Sardinskas · Answer

Hey @Jake Andronico,

This is some interesting stats, and although I have no data or charts to back it up, ill give my two cents on the topic. I think for a lot of people, owning a home transcends whether it is "affordable" or not. Owning a home is a life goal, regardless if it financially makes sense. For that reason, I still see home ownership rising for the foreseeable future.

Interested to see what other people think about this.

Matthew Gentile · Answer

Might not explain a large portion of the homeownership numbers, but I have seen friends who will buy property together now and all live there for a few years until one person buys the others out or whatever the case may be.

What the charts you provided don't indicate is whether they represent individuals who have name on deed. Or just homes individually that are owner-occupied versus renter occupied. I could see a scenario where if it's based on individuals who "own" stake in a home, the numbers could be skewed upward based on multiple people buying homes together to solve the affordability issue. 1 Home, 5 Homeowners type of thing.

V.G Jason · Answer

You need data to tell you people are stuck? I get the data folks who need data for everything, I just don't get when folks need data for when things in the middle and can't be decided. The whole point of no data in those cases is that it cannot be manufactured. You think they are going to create an option of "I'm stuck in my relationship and not filing for divorce cause financially we're screwed." Come on now,  and most data is already biased. You think any publishing resource is going to want to find that out too, let alone share it or post it? You must be void of how politics work.

Just go employ couple of hundred people, talk to a few hundred people a week, work with city/govt officials, talk to lawyers, you'll see the pulse quick. This isn't an interesting take, this is just how life is trending.

V.G Jason · Answer

This is just looking at the end data without realizing the consequences.

Families are now more "stuck" together; as in cannot file for divorce for financial reasons. Families now have way less disposable income, I could go on, on this. So yes, sure stats say they are up but at the cost of a lot more than how things were supposed to be trending up for. The sacrificial end of it is far deeper.

I was telling my brother this, but this era of harsher rates, less liquidity is going to make Americans a lot more diligent with who they live with, work for, how money,  works. etc. Forget the Great Reset this will be the Great Awakening or Great Enlightenment. The generation preceding will reap the rewards, this one will suffer. And suffer greatly.

April Rae · Answer

Several factors could explain why the homeownership rate remains relatively high. Firstly, various government policies and programs aimed at promoting homeownership can sustain or increase these rates, even amidst rising prices and interest rates. For example, lower down payment requirements, FHA loans, and other supportive housing policies make it possible for more people to buy homes despite the high market barriers.

Another factor might be the generational wealth transfer from Baby Boomers to Millennials and Gen Z. As older generations pass down wealth, younger people may find themselves in a position to afford homes, counteracting some of the affordability issues caused by market conditions.

Home Ownership Rate Actually Increasing...?

Most Popular Reply