• CMG MORTGAGE, INC. NMLS #1820

Gen X Boosts Homeownership Rate Recovery

  • 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 HomeFundItTM make it possible for home buyers to augment down payment savings and stay competitive. 

 

Sources: MarketWatch, Realtor.com

Grace Garcia
Sales Manager
NMLS # 238831
Branch NMLS # 1710023


Grace Garcia

PHONE: (562) 400-8471
ggarcia@cmgfi.com

APPLY NOW
CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).