One of the primary drivers boosting the homeownership rate in the U.S. is the growing number of millennial homebuyers. This cohort's homeownership rate had the largest increase of any age group year-over-year, according to U.S. Census Bureau data.
While the data show that homeownership rates are lowest for those under 35 years old at 36 percent, the group had the biggest jump at 1.3 percent. Bloomberg's Barry Ritholtz attributes this to rising rents in urban centers where many millennials work, driving them on to purchase a home. He adds, "The state of housing is, to a great extent, being determined by millennials ... The largest homebuying generation since the baby boomers. I suspect this demographic is likely to continue being the central force in the real estate market for decades to come.
Homeownership in the United States peaked in 2004, when 69.2 percent of all U.S. households owned their dwellings. The rate bottomed at 62.9 percent in the second quarter of 2016, a level not seen since 1965. But here what really interesting: the rate has since risen sharply to 64.2 percent. Many forces are behind the rise, including falling unemployment, soaring rents, increasing interest rates, and millennials finally integrating into the workforce after so much difficulty during and for several years after the Great Recession.
