An October 27th HousingWire article reports U. S. Census Bureau data as showing Homeownership rate continues to hover near 50-year low with the homebuilding and real estate sales industries waiting for Millennial home buyers to materialize.
The U.S. Census Bureau reports that Homeownership rates remain near lows not seen since 1965 at 63.5% of households owning versus renting. It is interesting to note that these numbers are settling back close to natural numbers when the market is not stimulated with aggressive to unrealistic mortgage rates.
Rental vacancy rates at a national level decreased to 6.8%, down 0.5 percentage points from last year. The homeowner vacancy rate remained unchanged from last quarter and last year at 1.8% in the third quarter.
HELP IS ON THE WAY, BUT WHEN?
“Given other evidence from the (U.S. Census Bureau release,) my views swing more with the optimists than the pessimists,” Trulia Chief Economist Ralph McLaughlin said. “Household formation surpassed 1.1 million, climbing from 944,000 last quarter. About 560,000 – or nearly half – of these households were owners, up from a loss of 22,000 last quarter.”
“I think this is good news in light of the fact that Millenials now make up the largest pool of potential new households,” McLaughlin said. “Though many are still living with their parents, they eventually will move out.”
“First, they will rent, and as they settle down, and then they will buy,” he said. “While we can’t know for sure they will own at rates of older generations, our survey work at Trulia shows 80% of Millennials want to own a home – the highest share of any cohort and the highest in the seven years we’ve run the survey.”
D/FW & JOBS ATTRACTING MILLENIALS
For investors, picking dynamic markets adds income and appreciation as well as reduces risk. Texas and most particularly is going to continue to attract companies, jobs and skilled people to fill them. Having visited Dallas frequently, it is astounding to me how much commercial and middle market housing has and is being built, and yet shortages remain. 2020 REI is expert in this market and can help any investor find and profit from this opportunity.