More Millennials Own Their Homes

The overall homeownership rate in the U.S. held steady in the third quarter of 2018, yet the Millennial homeownership rate posted the greatest annual increase.

Homeownership rates for all generations younger than 64 years grew annually. Millennials had a 1.2 percent annual increase, the highest of all age cohorts, indicating a return to the for-sale market, according to the National Association of Home Builders. Meanwhile, the total count of households grew to 121 million in the third quarter from 119 million in the third quarter of 2017. New renter households grew by 60,000.

According to the Census Bureau’s Housing Vacancy Survey (HVS), the U.S. homeownership rate was 64.4 percent in the third quarter of 2018, which is not statistically different from its last quarter reading. The national homeownership rate demonstrated stability during a quarter in which housing markets softened due to declining affordability conditions. This follows the rate dropping to a cycle low of 62.9 percent in the second quarter 2016. Compared to the peak of 69.2 percent in 2004, however, the homeownership rate is still lower by almost five percentage points.

Read more