Who Has Been Most Affected by the Housing Downturn?
Digested from Where the American dream of homeownership is fading the most
The Washington Post (2/16/16) Badger, Emily
Homeownership rates hit a 48-year low last year as people either remain wary of the housing market or struggle to afford high housing costs. But the housing market crash has had a significantly different impact on certain demographics.
Hispanic households, men, wealthier households and older millennials have been the hardest hit and the most likely to shift toward renting. Wealthier households, for example, were more likely than lower-income households to be homeowners heading into the recession, so the housing crash affected them at higher rates. And high housing prices continue to be a barrier toward first-time homeownership for older millennials.
Geography has also played a role in the shift. Metro areas hardest hit by the housing bust, such as Las Vegas, Phoenix and Fort Lauderdale, Florida, saw a greater increase in renters between 2006 and 2014 than other cities. Some of these same areas have also seen impressive jumps in rent prices over that same time frame, increasing the amount of household income spent on rent.