Home ownership in the United States at a 6-Year High
According to the United States Census Bureau the United States home ownership rate has climbed to a 6-year high. The home ownership rate started taking a dive after 2004 and continued in a downward spiral after the last recession hit in 2006. The real estate market has been getting stronger, even with the pandemic, the 2020 real estate market has been very strong and 2021 is expected to be even stronger.
The Economy is Strong
There was a lot of talk at the beginning of last year about another recession. That didn’t happen. In fact, the economy was very strong last year and afforded many people the opportunity to buy a home. The real estate market in 2020 is off to a great start, as well. It’s not only a good time for first-time homebuyers to purchase a home but it’s the perfect time for current homeowners to sell a home and buy a larger one.
Mortgage Interest Rates Are Low
Mortgage interest rates are at a historically all-time low currently. This makes home ownership very desirable and affordable for many people. More first-time home buyers are finally able to be approved to buy a home. During the last recession, many people lost their homes due to foreclosure or bankruptcy. Some people had to sell their homes using the short-sale process. This put home ownership on hold for these people for a few years. Finally, these unfortunate circumstances are turning around for people and they are able to purchase homes again.
Younger Generations are Buying Homes
The younger generations, the Millennials and Gen Z, are finally buying more homes. In 2020 the largest group of millennials is turning 30 years old. They are entering the housing market in full force right now. Realtor.com reports that in the fourth quarter of 2019 millennials held 48 percent of home purchase mortgages making them the largest generational group of homebuyers.
They took their time in their twenties living with their parents, paying off student loans and getting out of debt. Now they are saving their money to become homeowners. In fact, the Millennial Report states that 41 percent of Gen Z and 40 percent of the younger group of millennial’s now have a goal to purchase a home in the next few years and are saving their money to be able to do so.
New Construction is Growing Again
There has been more new construction started the past couple of years which is continuing in 2020. New construction was almost at a halt during the last recession and has been on a slow climb ever since. With more people being able to buy brand new homes as opposed to renting, the housing market has grown even stronger. This has definitely helped home ownership rates increase.
With the positive outlook on home ownership and low interest rates, it’s a great time to reach out to your local Realtor and mortgage professional to put a plan into action for buying a home. We strive to provide you with exceptional, honest and professional service with your goals in mind.