The rate of home ownership in America…..have we hit the bottom??…..
It has been falling for nearly a decade and in the fourth quarter of 2014, it hit the lowest level in over two decades at 63.9 percent, according to the National Association of Realtors.
The peak for the home ownership rate was just under 70% during the real
estate boom.
Why is it going up from here?
1. For one, it is getting easier to own a home because credit standards are loosening. Lower down payments are just ONE of the newly relaxed guidelines.
2. Secondly, the cost of renting keeps going up and it just makes more economic sense to own. When renting is more expensive than owning, before the benefits of tax deductions and the forced savings of principal reduction are taken into account, then the economic message can’t be ignored.
The most important reason?
The time is right.
3. More jobs are being created and that means the rate of household formation is increasing.
A report recently issued by the Lusk Center For Real Estate at the University of Southern California indicates that we are now at pre-recessions levels of household formulations.
That means that the Millennials are moving out and they will need places to live. Fewer and fewer are failing to launch!
According To Cole 