Homeownership rates plummet for younger Americans: Fannie Mae

New York /
Oct.October 13, 2011 09:41 AM

While the nation’s homeownership rate dropped during the most recent recession, it has remained relatively high by historical standards. But according to Fannie Mae research reported by the Wall Street Journal, that drop would be a lot more precipitous if it weren’t for America’s aging population.

Though the overall homeownership rate fell 1.1 percentage points to 65.1 percent between 2000 and 2010, it would have been 2.8 points had older citizens not begun to dominate the population. In the last 30 years homeownership rates for households over 65 have increased 7.4 percent, while rates for 25 to 34 year olds and 35 to 44 year olds have plummeted 9.6 and 9 percentage points, respectively. Today, just 42 percent of Americans aged 24 to 34 own their homes. Meanwhile, a recent survey suggested members of the baby boomer population are seriously looking to own second homes.

Due to general trends of delayed marriages and more school years, the shift away from ownership for younger people could be permanent, even when the economy recovers, Fannie Mae said. And Doug Duncan, chief economist for Fannie Mae, speculated that the current recession would scare young people away from ever owning a home.

A report from earlier this week showed New York State to have the country’s lowest ownership rate at just 53. percent. [WSJ]


Related Articles

arrow_forward_ios
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
FHFA director Sandra Thompson (FHFA, iStock)
Treasury suspends investment property restrictions to boost housing supply
Treasury suspends investment property restrictions to boost housing supply
From left: JPMorganChase CEO Jamie Dimon, Goldman Sachs CEO David Solomon and Morgan Stanley CEO James Gorman (Getty)
Demand for private-label mortgages on the rise
Demand for private-label mortgages on the rise
Fannie Mae CEO Hugh Frater (Fannie Mae, iStock)
Fannie Mae to count rent payments toward mortgage approval process
Fannie Mae to count rent payments toward mortgage approval process
Shares of Rocket Cos and LoanDepot rose while shares Fannie Mae and Freddie Mac plunged after Supreme Court ruling (Unsplash)
For mortgage sector stocks, Fannie and Freddie ruling was positive
For mortgage sector stocks, Fannie and Freddie ruling was positive
Mark Calabria and Sandra Thompson (Getty, FHFA)
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
JPMorgan Chase CEO Jamie Dimon (Getty)
JPMorgan invests in private-label mortgage platform
JPMorgan invests in private-label mortgage platform
Borrowers can now get a 30-year fixed-rate jumbo mortgage for $2 million at 2.65%. (iStock)
Jumbo mortgage lenders invade Fannie and Freddie’s turf
Jumbo mortgage lenders invade Fannie and Freddie’s turf
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...