The percentage of U.S. residents who own their homes is at
the lowest point it has been for more than 20 years, according to a report from
the U.S. Census Bureau. In the first quarter of 2015, 63.8% of people owned
their housing units, down from 64.8% at the start of 2014 (these figures are
seasonally adjusted).
The Census data includes decades of quarterly, seasonally
adjusted homeownership rates, and those rates have not fallen below 64% since
1993. The rate was 64% in the fourth quarter of 2014. The margin of error for
quarterly homeownership rates is 0.3%, meaning the change from the end of last
year to the start of this year wasn’t statistically significant. The
year-over-year change is.
Homeownership peaked in the second quarter of 2004 at 69.4%
and has generally declined since. Looking just at first-quarter data, the
homeownership rate has steadily fallen from a high of 69.2% in 2005. Among
consumers younger than 35, homeownership is far less common than it was six
years ago, when nearly 40% of that age group were homeowners. As of last
quarter, not quite 35% of them are (not seasonally adjusted). The greatest
decline in homeownership over the last year came in the 35- to 44-years-old
category: It fell from 60.7% in quarter one 2014 to 58.4% this year.
There are many reasons homeownership rates have fallen.
Though foreclosure rates have fallen in recent years, they still remain
historically high. Former homeowners who went through foreclosure likely
haven’t yet been able to return to the real estate market, which partially
accounts for the higher number of renters.
On top of that, mortgages aren’t easy to get. Lending
standards have eased a bit since the recession, but even consumers with decent
credit are still finding it difficult to secure home loans. Given that climate,
the most control consumers have over attaining their dream of owning a home is
to get their credit in good shape (you can see where you stand by getting a
free credit report summary on Credit.com). Coupled with a solid financial standing
and an affordable market, a credit history of on-time payments and well-managed
debt can improve consumers’ chances of loan approval.
This article was written by Christine DiGangi and originally
published on Credit.com.
This article was originally published here: Homeownership
Rate Sinks to Lowest Level Since 1993
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