This year has been quite a ride and our nation has truly seen its fair share of hurdles. From a global pandemic to record breaking unemployment and a resulting recession to follow, needless to say, the second quarter of 2020 has had more than a few challenges. Amidst the many roadblocks, however, the U.S. homeownership rate has been on the rise, signaling great strength in the recovery of the housing market and an indication that even in a time of crisis, Americans still feel confidence in buying a home.
Yesterday, the U.S. Census Bureau announced:
“The homeownership rate of 67.9 percent was 3.8 percentage points higher than the rate in the second quarter 2019 (64.1 percent) and 2.6 percentage points higher than the rate in the first quarter 2020 (65.3 percent).”
There are many reasons why the homeownership rate in this country is rising, and one of the number one factors is historically low mortgage rates. Rates hovering at all-time lows are helping to drive affordability and enabling more potential homeowners to enter the market today. According to Ralph McLaughlin, Chief Economist for Haus:
“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.”
Additionally, many potential homebuyers have been using their time this year to search for homes that offer more space than their current rental apartments. As our lifestyles, working conditions and living situations continue to evolve, many homebuyers find it necessary to take advantage of today’s market. Many of these homebuyers are younger and, as noted by Odeta Kushi, Deputy Chief Economist at First American, are the buyers driving the homeownership rate in an upward direction:
“Big jump in the homeownership rate today, mostly driven by younger households. We saw a spike in the number of owners, and a decline in the number of renters. This is the highest rate of homeownership since 2008.”
This growth is outstanding news for the housing market and for those who have recently found their new homes. If homeownership is on your shortlist this year, maybe now is a great time to meet with a real estate professional to evaluate your current situation. Perhaps historically low mortgage rates can help you to become a homeowner too. Opportunity awaits!
Resource – Keeping Current Matters