Tag Archives: home-owners

Homeownership Up From 50-Year Low

Homeownership rate jumps from 50-year low

Source: The Wall Street Journal

The U.S. homeownership rate may have finally bottomed out, as the share of Americans who own homes is steadily climbing. The ownership rate posted an increase in the second quarter, reversing a sharp downward trend that begun in the Great Recession.

The homeownership rate was 63.7 percent in the second quarter, the U.S. Census Bureau reported. That marks nearly a full percentage point increase from a year ago. Last year, the homeownership rate had plunged to a 50-year low of 62.9 percent.

“The addition of 1.2 million households being homeowners is clearly good news, as more households are participating in housing equity gains,” says Lawrence Yun, chief economist for the National Association of REALTORS®. “But let’s keep it in perspective: There are fewer homeowners today compared to a decade ago, while renter households have risen by 8 million.

So it is still the case that the massive $7 trillion in housing wealth gains from the cyclical low point has been accumulated by a fewer number of families in America. Further advances in homeownership are required to strengthen and broaden the middle class.”

Read the full story

Money Monday: Homeownership rates affected by student debts

Student debts have seemed to affect homeownership rates, according to the Federal Reserve Bank of New York.

student loan debt

About 32% of those in their 20s owned a home in 2007, but that’s fallen drastically to 21% in 2016.

While the poor labor market and memories of the housing bubble certainly played a role, student debt can explain up to 35% of the decline, according to a report from the Federal Reserve Bank of New York released Thursday.

The results suggest that the rise in college costs will result in “weaker spending and wealth accumulation among young consumers in the years to come.”

It’s consistent with surveys that have asked those with student debt if it affected their decision to buy a home. Half of those under the age of 35 surveyed by the National Association of Realtors in 2016 said it had delayed their purchase. And 25% told Pew Research Center that student loans had made it harder to buy a home in 2011.

Read more of CNN’s article here: “Yes, student debt is delaying homeownership.”

The Size Home Owners Want

Current statistics of today’s homeowners

Current homeowners desire a different size home from those of different generations or various incomes.

Goldilocks mindset - real estate infographic CALIFORNIA ASSOCIATION OF REALTORS

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS.

What Xers Want in a Home

Gen X home buyers want specific things from and priorities for their homes, and have different desires than perhaps other generations.

Family is a top priority among this generation, and want their house to reflect this.

what_xers_want_-_hires

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS here.

Money Monday: Good news for home buyers

Incomes are finally rising faster than home prices.

Photo from Pictures of Money

Photo from Pictures of Money

“For the first time since 2011, incomes rose faster than home prices in the U.S., according to a new report from Zillow.

“The median home price climbed to $188,100 in August, a 5% increase from the same time a year ago.

“And last week, the Census Bureau reported that median household income increased to $56,516 in 2015, up 5.2% from 2014.”

CNN. “Here’s some good news for house hunters.”  http://money.cnn.com/2016/09/22/real_estate/incomes-rise-faster-than-home-values

Read more of this article at CNN here.

Common Remodeling Projects

When consumers remodel their home, they consistently focus on a couple key areas.

Those home owners, according to home remodelers, spend money on upgrading:

  • 81% focus on redoing the bathroom
  • 79% spend money and time on refreshing the kitchen

Room additions and whole house remodeling projects are two other focuses, but only about 47 – 49% of home owners work on those.

WhattheRemodelReveals

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS at CAR.org.

Money Monday: Falling homeownership rates

Falling homeownership rates for more than just millennials

home buyer regretsLast year, 36.3% of households were in rentals, leaving the homeownership rate at 63.6% (10 years ago it was at 69%) (Shreya Agarwal, Forbes. http://www.forbes.com/sites/shreyaagarwal/2016/05/06/homeownership-rates-are-falling-and-its-not-just-a-millennial-problem/?ss=personalfinance#193b367ba9e0).

But according to Forbes, it’s not millennials that are the leading age range in this data; it’s 35- to 44-year-olds.

Read Forbes’ full article on this real estate data here: “Homeownership Rates Are Falling and It’s Not Just a Millennial Problem”.

What Boomers Want in Real Estate

Two-thirds of homeowners are over 55

That means that they have a large impact on housing for all generations.

WhatBoomersWantThis infographic is from CAR.org.