Homeownership Rate Will Decline Further as Demographics Shift
Rising rents, mounting student debt, and a shift in demographics contribute to the U.S. homeownership rate’s continuing decline
June 8, 2015
Homeownership Rate Will Decline Further as Demographics Shift
Analysts at the Urban Institute predict that by 2030, the U.S. homeownership rate will fall to 61.2 percent – the lowest since the rate was first recorded in 1965.
The reason for the decline is the nation’s shifting demographics. A majority of household formation this decade and the next will be formed by minorities. The Wall Street Journal reports that “these new households – nearly half of which will be Hispanic – have lower incomes, less wealth, and lower homeownership rates than the U.S. average.”
Real estate reporter Nick Timiraos likens this trend to a looming housing crisis that is “very different from the subprime mania of the early 2000s, but it shares one trait: Policy makers in Washington appear either unaware or unwilling to do much about it.”
