Homeownership Rate in U.S. Hits 10 Year Low

Dennis Norman

According to a report issued by the U.S. Census Bureau earlier this week, the percentage of Americans that own a home in the U.S. in the first quarter of 2010 dropped to 67.1 percent, the lowest rate of homeownership since the same quarter of 2000. The homeownership rate for 4th quarter 2009 was 67.2 percent, the low for 2009.

REGIONAL HOMEOWNERSHIP:

The Midwest Region has the highest rate of homeownership, as of the 1st quarter of 2010, at 70.9 percent with the South region not far behind at 69.2 percent.  The Northeast homeownership rate was 64.4 percent and the West had the lowest at 61.9 percent.

HOMEOWNERSHIP DEMOGRAPHICS:

  • Traditionalists Generation, 65 years and above, 80.6 percent.
    • Highest rate for this group since first quarter 2007
  • Older Boomers, 55 to 64 years, 79.1 percent.
    • Highest rate for this group since third quarter 2009
  • Younger Boomers, 45 to 54 years, 74.8 percent.
    • Highest rate for this group since third quarter 2008
  • Generation X’ers, 35 to44 years, 65.3 percent
    • Lowest rate for this group in over 5 years
  • Generation Y’ers, under 35 years, 38.9 percent.
    • Lowest rate for this group in over 5 years

What is interesting about the age of homeowners is that, while first-time home sales have been propping up the market, partially as a result of the first-time homebuyer tax credit, the younger population’s percentage of homeownership has dropped dramatically.  It seems that the X’ers and Y’ers either don’t value home ownership as much as their parents did, don’t trust a home as an investment, or perhaps cannot afford to buy a house.  If this trend continues I would think it will definitely drag down the homeownership numbers in the future as well.

Homeownership by Race and Ethnicity:

  • Non-Hispanic White – 74.5 percent
  • Black – 45.6 percent
  • Hispanic (of any race) – 48.5 percent
  • All Other Races – 57.2 percent


 

 

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