US homeownership expected to rise for the young
The homeownership rate for young Americans will probably increase over the next decade to close to 60 percent, according to Freddie Mac.
The “American Dream’’ could be on the verge of a rebound for some.
The homeownership rate for young Americans will probably increase over the next decade to close to 60 percent from below 40 percent in 2016 as their incomes increase and they start families, according to Freddie Mac estimates. The data track two cohorts: Americans who were between the ages of 25-34 in 2016 and those who will be in that age group in 2025.
“Historically low mortgage rates and increasingly favorable employment conditions should have generated a far greater number of home purchases by young adults, especially in the last five years,’’ said Sam Khater, Freddie Mac’s chief economist. “Unfortunately, home-price and rent growth above incomes — driven primarily by a severe shortage of housing supply — have been too high of a hurdle for many would-be buyers to clear.’’
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