Does This Look Like A Housing Recovery To You?
We just learned that the home ownership rate in the United States has fallen to the lowest level in 19 years. But of course this is not a new trend. As you will see in this article, the home ownership rate in the United States has been in a continual decline for more than 7 years. Obviously this is not a sign of a healthy economy. Traditionally, home ownership has been one of the key indicators that you belong to the middle class. When people define “the American Dream”, it is usually one of the first things mentioned. So if the percentage of Americans that own a home has been steadily going down for 7 years in a row, what does that tell us about the health of the middle class in this country?
The chart that you are about to view is clear evidence that we are in the midst of a long-term economic decline. It shows what has happened to the home ownership rate in the U.S. since the year 2000, and as you can see it has been collapsing since the peak of the housing market back in 2007. Does this look like a housing recovery to you?…
So many people get caught up in what is happening on Wall Street, but this is the “real economy” that affects people on a day to day basis.
Most Americans just want to be able to buy a home and provide a solid middle class living for their families.
The fact that the percentage of people that are able to achieve this “American Dream” is falling rapidly is very troubling.
There are some that blame this stunning decline in the homeownership rate on the Millennials.
And without a doubt, they are a significant part of the story. They are moving back home with their parents at record rates, and many that are striking out on their own are renting apartments in the big cities.
This is one area where the decline of marriage in America is really hitting the economy. Back in 1968, well over 50 percent of Americans in the 18 to 31-year-old age bracket were already married and living on their own. Today, that number is below 25 percent.
But that is not all there is to this story.
In fact, the homeownership rate for Americans in the 35 to 44-year-old age bracket has been falling even faster than it has for Millennials…
In the first quarter of 2008, nearly 67% of people aged 35-44 owned homes. Now the number is barely above 59%. The percentage of people under 35 owning homes only fell five percentage points, to 36% from 41%.
So why is this happening?
Well, it is fairly simple actually.