The Staggering Truth Behind Falling Homeownership Rates
Digested from “Why the homeownership rate will keep falling – and falling, and falling”
The Washington Post (6/16/2015) Badger, Emily
Since the height of the housing boom, the rate of homeownership in the United States has fallen, with more significant drops expected in the recent years. Experts at the Urban Institute project rates will continue to decrease well into 2030. In fact, the Urban Institute predicts the rate will be as low as 61.3 percent in 2030. That would mean that a majority of the estimated 22 million new U.S. households will be renters, not buyers.
Many point to the market bust in the early 2000s as the culprit behind homeownership decline. More people are renting than ever because of foreclosures, market wariness and high housing costs. And although the future may be dim for homeownership, it opens up exciting possibilities for those in apartment community development. Developers should focus more on these communities and less on large-scale homes for purchase.