Young people might benefit from knowing “real” homeownership rate
YOUNG MONEY Staff
5 September 2012
Data provided by the U.S. Census Bureau indicates that the homeownership rate declined to 65 percent in 2012 from 69 percent in 2005 and 2006, which was a record level.
The all-time high of 69 percent happened at a time when traditional knowledge dictated that purchasing a home was considered a great financial move to make by many people, according to Bloomberg Businessweek.
The picture for homeowners looks far worse if it accounts for the fraction of people who are in foreclosure or on their way to losing their homes since they are 90 or more days delinquent on their mortgage payments, the media outlet reports.
Analysis done by Sean Fergus, manager of research at John Burns Real Estate Consulting, indicates that the homeownership rate accounting for the aforementioned factors was 62.1 percent in the second quarter of 2012, which was its lowest since 1965, according to the news source.
The almost rock-bottom homeownership rate provides a stark contrast to the very strong sentiment that surrounded real estate before the recent recession.
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