Homeownership at 48-Year Lows
Homeownership is on a rapid decline… And it’s only getting worse since the height of the housing boom.
In January 2015, it fell to 20-year lows of 63.9% -- a rate last recorded in the third quarter of 1994.
In April, it fell to lows of 63.7% -- the lowest since 1990.
Nowadays, notes CNBC, that rate has plunged to 63.4% -- a number not seen since 1967.
It’s not likely to reverse when the housing collapse becomes a distant memory either. In fact, according to the Urban Institute, homeownership could continue falling well into 2030, as reported by The Washington Post.
By that time, the rate could be as low as 61.3% -- a number not seen for at least 50 years.
“Viewed another way,” notes The Washington Post, “A big surge in renters is coming. And this trend has major implications for the kind of housing we should be building, as well as all of the housing we’ve already built. Between 2010 and 2030, according to the report, a majority of the estimated 22 million new households that will form in America will be renter households.”
It’s another reason why rents could be about to rocket.
Coupled with short supply, and rents could be on an aggressive move higher. Look at Tucson, Arizona for example, where there just is not enough inventory to satisfy hot demand.