WASHINGTON – Jan. 24, 2013 – The fallout from the housing crisis is still being felt today. One major casualty is the rate of homeownership in the U.S., which has fallen substantially.

The picture is especially bleak for younger households who make up the bulk of first-time homebuyers. According to U.S. Census Bureau data, the biggest decline in homeownership was in households headed by people under 35 years of age. Rates for this demographic group plummeted from a homeownership peak of 43.6 percent in summer 2004 to 36.3 percent in September 2012.

Meanwhile, households aged 35 to 44 experienced a decline in homeownership from 70.1 percent at the start of 2005 to 61.8 percent as of last year’s third quarter.

Two major issues contributed to the decline in homeownership among younger people. First, tight lending requirements and weak labor markets made homeownership unattainable for many.

Second, foreclosures caused some in these groups to become renters or cease to be households entirely by moving in with friends or family.

Declining homeownership rates among younger households can have a broad ripple effect on the economy, ranging from delays in marriage and having children to reduced wealth accumulation.

Source: U.S. News & World Report (01/22/13) Dietz, Robert

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