WASHINGTON – Oct. 31, 2016 –After a drastic fall in the US 50 years, the homeownership rates rises up in the third quarter of 2016. According to Census Bureau, the US homeownership rate rose in the July-September quarter to 63.5%, still lower than last year quarter. However, the rate of 69.2 percent was recorded during the last housing boom.
In 2016, third quarter the country gained more than 1.1 million homeowners (both owned and rented) which is a good sign for the housing market.
Jed Kolko, Indeed.com (online job site) chief economists, said “Though the rate of renters household under the housing formation is still high, the owner-occupied rate is at its peak, when compared to a decade. Both millennials and improving economy will give the highest level to the homeownership in coming days.”
Have you ever thought why demands for rental homes are higher than home buying demand? It is due to several reasons. Youth covers a major portion of the total US population, typically obtain student loan debt, and that’s why being sidelined from the housing market crisis. And millions of Americans are still in the housing crisis, trying hard to repair their credit after foreclosure season, which badly ruined their financial, physical and mental ability to step forward.
Aaron Terrazas, an economist of the leading real estate named ‘Zillow’, said: “An increase in household formation is an inspiration for young adults to gain more confidence about the economy and the housing market.”
Due to the housing market crisis, young adults are stretching longer to tie knots and have children. But now the situation is taking a safe turn.
Trulia (house of real estate listings) top notch economist Ralph McLaughlin added, “ Though millennials majority is living with their parents, the housing turn brings a good news for them to wake up and step towards the larger households pools in the US.”
Millennials will start from small rent, then slowly move towards home buying. According to Trulia survey, 80 percent of millennials wish to buy their own home, the highest figure we achieved since last 7 years.
Flying in the era of homeownership, there will be a severe lack of homes in the future. The situation will get worse when young people search for homes, available for sale. During the 2016 third quarter the homeownership rate rises to its highest level, but in the winter months, a sharp decline was noticed, surveyed by Realtor.com.
“In October, the season of home sale declined when compared with any other month this summer, a decline of 11 percent recorded since July 2015,” said Realtor.com chief economists Jonathan Smoke.