Gen X Boosts Homeownership Rate Recovery

Blog posted On December 07, 2017

The national homeownership rate has struggled to regain traction since the pre-recession housing peak.  Last month, a report from the Census Bureau showed the United States homeownership rate improved to 63.9% in the third quarter, up slightly from second quarter’s 63.7% and significantly from last year’s 63.5%.  One of the notable finds from the report was the resurgence in Generation X homeowners, the generation most impacted by the housing crisis.

Based on the Census bracket, Gen X, or the 35-44 age group, showed the most significant improvement in homeownership.  According to Trulia chief economist, Ralph McLaughlin, Gen X was “really hit hard by the crisis,” but, “last quarter seems to be an inflection point.  Renters are making the conversion to buying.”

Gen X also tends to spend more on a home than Millennials and Baby Boomers.  Realtor.com reports that in September 2017, the median purchase price of a home financed by Gen Xers was $280,000, compared with a median purchase price of $237,000 for Millennials and a median purchase price of $258,000 for Baby Boomers.

The homeownership rate has stumbled since housing crisis recovery for a number of reasons, and many of these reasons can be attributed to the difficulty to save for a down payment. Former homeowners who lost their home to foreclosure are struggling to rebuild equity, and potential first-time home buyers report difficulty in simultaneously saving for a down payment, while paying skyrocketing rents.  As home prices continue to appreciate, the value of the down payment will increase.  Programs like HomeFundIt^TM make it possible for home buyers to augment down payment savings and stay competitive. 

Sources: MarketWatch, Realtor.com