Homeownership Rate Continues to Rise in 2020
So far, it’s been quite a ride this year, and our nation has truly seen its fair share of hurdles. From COVID-19 to record
unemployment and then the resulting recession, just to name a few, the second quarter of 2020 has had more than a few
challenges. Amidst the many roadblocks, however, the U.S. homeownership rate rose again, signaling great strength in the
recovery of the housing market and an indication that even in a time of crisis, Americans still feel confident about buying a home.
Yesterday, the U.S. Census Bureau announced:
“The homeownership rate of 67.9 percent was 3.8 percentage points higher than the rate in the
second quarter 2019 (64.1 percent) and 2.6 percentage points higher than the rate in the first quarter 2020 (65.3 percent).”
The increase is also represented by race and ethnicity of the householder:
There are many reasons why the homeownership rate in this country is rising, and one of the key factors is historically-low mortgage
rates. Rates hovering at all-time lows are helping to drive affordability and enabling more potential homeowners to
enter the market today. According to Ralph McLaughlin, Chief Economist for Haus:
“Mortgage rates are the icing on the cake for households that were thinking about buying...They
found an unexpected opportunity during the worst economic downturn America has seen since the Great Depression.”
In addition, many potential homebuyers have been using their time this year to search for homes that offer more space than their
current rental apartments. Many of these homebuyers are younger and, as noted by Odeta Kushi, Deputy Chief Economist at First
American, are the buyers driving the homeownership rate in an upward direction:
“Big jump in the homeownership rate today, mostly driven by younger households. We saw a spike
in the number of owners, and a decline in the number of renters. This is the highest rate of
homeownership since 2008.”
This growth is outstanding news for the housing market and for those who have recently found their new homes. If
homeownership is on your shortlist this year, maybe now is a great time to meet with a real estate professional to evaluate your
current situation. Perhaps historically low mortgage rates can help you to become a homeowner too.
Bottom Line
If you’re thinking of buying a home this year, let’s connect today to take your dream one step closer to reality.
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Announcement from the census: As a result of the coronavirus pandemic (COVID-19), data collection operations for the CPS/HVS were
affected during the second quarter of 2020. In-person interviews were suspended for the duration of the second quarter and replaced with
telephone interview attempts when contact information was available. If the Field Representative was unable to get information on the
sample unit, the unit was made a Type A no interview (no one home, refusal, etc.). See the FAQ for more information.
Liliana Reeves P.A, REALTOR|📲 305-609-3525 | Liliana.Reeves@GMail.com | www.LilianaReeves.com
“Selling Your Home Is My Business and Finding Your Next Home Is Too”