Homeownership Back on the Rise
After the housing burst, many homeowners turned into renters. The metro areas that found themselves with the biggest renter gain were Phoenix, Las Vegas, and the larger Florida metros such as Fort Lauderdale and Miami; as these areas saw the largest hits.
After two years of steady decline, homeownership rates in the U.S. have slowly been back on the rise, marking this quarter as the second straight quarter in rising homeownership. This is due to continued job growth and loosening credit requirements.
In a reporting from the Census Bureau, the percentage of Americans who own their homes went from 63.7 percent, up to 63.8 percent in the fourth quarter, a .1 percent rise in comparison to the previous three months. Though minimal, the increase followed one in the third quarter after the market saw a string of declines that started in late 2013.
Lifted by the growth in jobs and U.S. employment rate, renters are once again beginning to jump back into homeownership. In December, home sales saw the highest jump on record when they rose 14.7 percent. According to the National Association of Realtors, first-time buyers, matching the highest share since August, made 32 percent of those home purchases.
Though we are seeing higher rates than the 48-year low in the second quarter, rates still remain below the peak of 69.2 percent that was once reached. Homeownership is expected to gradually rise over the next few years.
What trends, if any, have you noticed among renters and homeowners? Leave your comments below!