{"id":249907,"date":"2024-08-01T00:24:48","date_gmt":"2024-08-01T00:24:48","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/08\/01\/under-35-homeownership-rate-plummets-to-4-year-low\/"},"modified":"2025-06-25T17:13:27","modified_gmt":"2025-06-25T17:13:27","slug":"under-35-homeownership-rate-plummets-to-4-year-low","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/08\/01\/under-35-homeownership-rate-plummets-to-4-year-low\/","title":{"rendered":"Under 35 homeownership rate plummets to 4-year low"},"content":{"rendered":"<p> [ad_1]<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/07\/UCmjN-the-homeownership-rate-for-the-35-and-under-set-just-hit-its-lowest-level-in-4-years2-e1722459569534.png?w=2048\" \/><\/p>\n<p>Home prices are still high, and so are mortgage rates. The kids aren\u2019t all right.\u00a0<\/p>\n<div>\n<p>The homeownership rate for people younger than 35 years old, who are generally younger millennials and older Gen Zers, fell to its lowest point in more than four years in the second quarter, <a href=\"https:\/\/www.census.gov\/housing\/hvs\/data\/histtabs.html\" target=\"_blank\" aria-label=\"Go to https:\/\/www.census.gov\/housing\/hvs\/data\/histtabs.html\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\">data<\/a> from the U.S. Census Bureau released yesterday shows. \u201cHomeownership for households 35 and younger is still higher than pre-pandemic, but down from pandemic-era highs, when low mortgage rates enabled home purchasing,\u201d a Realtor.com <a href=\"https:\/\/www.realtor.com\/research\/homeownership-q2-2024\/\" target=\"_blank\" aria-label=\"Go to https:\/\/www.realtor.com\/research\/homeownership-q2-2024\/\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\">analysis<\/a> of the data read.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-datawrapper wp-block-embed-datawrapper\">\n<p><iframe class=\"\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-UCmjN\" frameborder=\"0\" height=\"496\" loading=\"lazy\" scrolling=\"no\" src=\"https:\/\/datawrapper.dwcdn.net\/UCmjN\/4\/\" style=\"border:none\" title=\"The homeownership rate for the 35-and-under set just hit its lowest level in 4 years\" width=\"100%\"><\/iframe><\/p>\n<\/figure>\n<p>The pandemic fueled a housing boom, mostly because <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\" target=\"_blank\" aria-label=\"Go to https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\">mortgage rates<\/a> were the lowest they\u2019d ever been, but also because people could work from anywhere. Because of that, home prices skyrocketed; they\u2019ve risen roughly 50% since the start of the pandemic. But then inflation reached a four-decade high, and the Federal Reserve raised interest rates multiple times, indirectly bumping up mortgage rates. The combo has been <a href=\"https:\/\/fortune.com\/2024\/07\/30\/housing-market-analyst-poison-ivy-zelman-affordability-grind\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/07\/30\/housing-market-analyst-poison-ivy-zelman-affordability-grind\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">an affordability killer<\/a>. The average 30-year fixed <a href=\"https:\/\/www.mortgagenewsdaily.com\/mortgage-rates\/mnd\" target=\"_blank\" aria-label=\"Go to https:\/\/www.mortgagenewsdaily.com\/mortgage-rates\/mnd\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\">daily mortgage rate<\/a> is currently 6.70%, and the <a href=\"https:\/\/www.freddiemac.com\/pmms\" target=\"_blank\" aria-label=\"Go to https:\/\/www.freddiemac.com\/pmms\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\">weekly<\/a> one is slightly higher. In a related manner, the Fed met today but left interest rates unchanged, at the highest they\u2019ve been in 23 years.<\/p>\n<p>Either way, in the second quarter of this year, the total homeownership rate for the country was relatively unchanged, at 65.6%. It\u2019s lower than the rate in the early months of the pandemic, and it\u2019s declined steadily since then. Fewer people are buying and selling homes, and last year alone, existing-home sales <a href=\"https:\/\/fortune.com\/2024\/01\/19\/housing-market-2023-existing-home-sales-lowest-since-1995\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/01\/19\/housing-market-2023-existing-home-sales-lowest-since-1995\/\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">fell to their lowest point<\/a> in close to three decades.\u00a0<\/p>\n<p>And they\u2019re still depressed: In June,<a href=\"https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-slipped-5-4-in-june-median-sales-price-jumps-to-record-high-of-426900\" target=\"_blank\" aria-label=\"Go to https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-slipped-5-4-in-june-median-sales-price-jumps-to-record-high-of-426900\" rel=\"noopener\" class=\"sc-82aca549-0 klXAci\"> existing-home sales<\/a> dropped 5.4% from a year earlier. (All the while, the median existing-home price topped another all-time high, at $426,900.)\u00a0<\/p>\n<p>So it\u2019s no secret that the homeownership rate among younger cohorts is falling. Just consider, the <a href=\"https:\/\/fortune.com\/2024\/03\/29\/starter-home-income-needed-nearly-doubled-pandemic-housing-market\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/03\/29\/starter-home-income-needed-nearly-doubled-pandemic-housing-market\/\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">salary needed<\/a> to afford a starter home has almost doubled since the pandemic to almost $76,000 a year, and not to mention, <a href=\"https:\/\/fortune.com\/2024\/07\/28\/housing-market-crisis-affordability-1-million-starter-homes-more-common-home-prices\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/07\/28\/housing-market-crisis-affordability-1-million-starter-homes-more-common-home-prices\/\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">million-dollar starter homes<\/a> are more common than ever.\u00a0<\/p>\n<p>\u201cOver the last couple of years younger buyers have suffered the brunt of climbing prices and mortgage rates more than any other group,\u201d said the report author Hannah Jones in a statement. Jones is Realtor.com\u2019s senior economic research analyst. \u201cMany buyers under the age of 35 are first-time buyers and therefore do not have existing home equity to leverage into a home purchase, like many older generations do.\u201d<\/p>\n<p>She continued: \u201cSaving for a down payment has become increasingly challenging as both rents and home prices hover near pandemic-era highs. Today\u2019s housing market asks a lot of buyers, and younger buyers who earn lower wages, have less savings, and do not have equity in an existing home are less able to compete than older, more established buyers.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-datawrapper wp-block-embed-datawrapper\">\n<p><iframe class=\"\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-5ZQbR\" frameborder=\"0\" height=\"521\" loading=\"lazy\" scrolling=\"no\" src=\"https:\/\/datawrapper.dwcdn.net\/5ZQbR\/4\/\" style=\"border:none\" title=\"People under 35 have always had the lowest homeownership rate\" width=\"100%\"><\/iframe><\/p>\n<\/figure>\n<p>But while the younger group saw their homeownership rate fall on a quarterly and yearly basis, some of the older generations saw theirs rise. Two groups, people between 35 and 44 years old, and those between 45 and 54 years old, saw their homeownership rate increase from the first to second quarter of the year.\u00a0<\/p>\n<p>There were different outcomes by income, as you might have anticipated. In the second quarter, households that made more than, or the same, as the median income saw an increase in the homeownership rate to 79.2%, from 78.8% in the first quarter of this year. However, households with incomes below the median saw their homeownership rate fall from the first quarter to the second to 52.1%. It fell from a year earlier, too. \u201cAs home prices and mortgage rates remain elevated, financing a home purchase will remain prohibitively expensive for many households, especially those earning less than the national median income,\u201d Realtor.com said.\u00a0<\/p>\n<p>Still, what we do know is that things could be looking up. Home price inflation is <a href=\"https:\/\/fortune.com\/2024\/06\/26\/housing-market-outlook-home-prices-record-inflation-slowing\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/06\/26\/housing-market-outlook-home-prices-record-inflation-slowing\/\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">slowing<\/a>,\u00a0mortgage rates are coming down, and inventory is increasing. But that isn\u2019t to say housing will be affordable again, it just might not get worse.\u00a0<\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\"><strong>Recommended Newsletter: <\/strong>CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. <a href=\"https:\/\/www.fortune.com\/newsletters\/ceo-daily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=finance\" target=\"_self\" aria-label=\"Go to https:\/\/www.fortune.com\/newsletters\/ceo-daily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=finance\" class=\"sc-82aca549-0 klXAci\" rel=\"noopener\">Subscribe Now<\/a>.<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/07\/31\/gen-z-millennial-homeownership-rate-plummets-home-prices-mortgage-rates\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Home prices are still high, and so are mortgage rates. The kids aren\u2019t all right.\u00a0 The homeownership rate for people younger than 35 years<\/p>\n","protected":false},"author":1,"featured_media":249908,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/249907"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=249907"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/249907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/249908"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=249907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=249907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=249907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}