Why Should All The Chicken Littles Calm Down

Dated: 08/08/2019

Views: 27


Why All the Chicken Littles Should Calm Down | MyKCM

The U.S. Census Bureau recently released their 2019 Q2 Homeownership Report. Some began to see the sky falling, believing the report showed Americans may be stepping back from their belief in homeownership.

The national homeownership rate (Americans who owned vs. rented their primary residence) increased significantly during the housing boom, reaching its peak of 69.2% in 2004. The Census Bureau reported that the second quarter of 2019 ended with a homeownership rate of 64.1%, which is down from the 64.8% rate for the fourth quarter of 2018. Based on this news, some started to question the consumer’s belief in the idea of homeownership as a major part of the American Dream.

Everyone Calm Down…

It is true the homeownership rate did fall. However, if you look at the national rate over the last 35 years (1984-2019), you can see that the current homeownership rate has returned to historical norms. The 64.1% rate is equivalent to the rates in 1984 and 1994.Why All the Chicken Littles Should Calm Down | MyKCM

What Will the Future Bring?

Part of the reason the homeownership rate slipped is a lack of inventory available for purchase for first-time home buyers. The demand is there, but currently, the supply is not. It seems, however, that is about to change.

In a recent report, Ivy Zelman explained that builders have finally started to increase the number of homes they’re constructing at the lower-end price points:

“Robust growth in the entry-level price point of late should translate to a reacceleration in homeownership rates moving forward.”

Bottom Line

Today, the homeownership rate sits at historic norms. In all probability, it will increase as more inventory becomes available. There is no reason for concern.

Contact me today and let's find you a place you can call home.

Blog author image

Leo Albanes

I am a Licensed Florida Real Estate Broker, Realtor®, and Owner of Charlotte County Properties Inc for over 16 years. In that time, I have received many review, awards and testimonials demonstrating....

Latest Blog Posts

Make Homebuying Easier To Understand Use Trusted Professionals

In the spring, many excited buyers get ready to enter the housing market. Others continue dreaming about the homes they’d like to buy. The truth is, many potential buyers continue to dream longer

Read More

Buyer Demand Growing In Every Region

Buyers are hungry and aggressive for buying homes this fall, increasing the demand for home buying in all four regions of the country.According to the latest ShowingTime Showing,

Read More

This Is Not 2008 All Over Again The Mortgage Lending Factor

Some are afraid the real estate market may be looking a lot like it did before the housing crash in 2008. One of the factors they’re pointing at is the availability of mortgage money. Recent

Read More

The Cost Of Renting Vs Buying A Home INFOGRAPHIC

Some Highlights: Historically, the choice between renting and buying a home has been a tough decision. Looking at the percentage of income needed to rent a median-priced home today

Read More