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The rate of homeownership in America has reached a level untouched since 2008. Spearheaded by the young population, the housing boom that had been stalled by the Coronavirus seems to have found its feet back.
The Census Bureau puts the Q2 rate at 67.9%. This is the fourth quarterly increase in succession, building on the 65.3% posted in Q1. Young buyers, specifically those below 35 years have registered a homeownership rate of 40.6%, which is the highest it has been in the last 12 years.
It is not hard to recall that businesses were largely shut down in the wake of the Coronavirus and it had impeded the housing growth. The market has however rallied stronger than expected since then. Ralph McLaughlin, the chief economist for co-investing home buying platform Haus, said in a statement, “Mortgage rates are the icing on the cake for households that were thinking about buying. They found an unexpected opportunity during the worst economic downturn America has seen since the Great Depression.”
The number of renter households has declined by 7.2% and this has also contributed to the rise in the rate of homeownership. The fall in renter numbers can be put down to high unemployment; leaving many of them with no choice but to share space with roommates or get back in the family fold or even become homeowners themselves. This said, the 10% hike in homeownership numbers point towards an economic rebound on the horizon.