Homeownership finally rising after decade of decline

By February 3, 2016News, Uncategorized

The fourth quarter of 2015 saw a continued rise in homeownership rates from the previous quarter. The U.S. Census Bureau reported that 63.8 percent of Americans owned homes in the last quarter of 2015. The homeownership rate during the third quarter was 63.4 percent. The increase may be correlated with an increase in employment rates and less restrictive credit availability.

In 2013, the homeownership rate had begun to decline. However, in July 2015, more Americans began to buy homes, and the number is continuing to increase. This is what Matthew Pointon, a property economist at Capital Economics, predicted. In fact, he expects the homeownership rate to steadily rise over the next few years.

Property holders between 35 and 44 years of age experienced the greatest increase in homeownership. Rates for that age group increased from 58.1 percent to 59.3 percent between the third and fourth quarters of last year. The age group that includes homeowners ages 65 and older saw an increase in homeownership of just over half a percent. Individuals between 55 and 64 years of age saw a decline of .1 percent in the last quarter of 2015.

Sales of existing homes were up significantly, and sales prices of existing homes have increased over the past four years. The Federal Reserve Bank of New York predicts that the trend will continue. Because the median income for people with college degrees increased about $3,000 since 2014, college graduates may be more likely to be able to purchase homes now.