First-Time Homebuyer Watch: 2nd Quarter 2015
Thursday, August 13, 2015
By Cheryl Russell, New Strategist Press
The homeownership rate of households headed by people aged 30 to 34 fell in the second quarter of 2015 to an all-time low of 45.2 percent, according to the Census Bureau.
Historically, homeownership became the norm in the 30-to-34 age group – rising above 50 percent. But beginning in 2007, the homeownership rate of 30-to-34-year-olds went into a tailspin. In the second quarter of 2011, the rate fell below 50 percent for the first time. In the past year, the homeownership rate of the age group fell 1.3 percentage points. Is this the bottom for the age group? Only time will tell.
The new age of first-time home buying is 35 to 39, but even this age group has been slipping toward the 50-percent threshold. The homeownership rate of 35-to-39-year-olds stood at 55.1 percent in the second quarter of 2015 – the same as in the first quarter, and the age group's record low. Since peaking in the first quarter of 2007, the homeownership rate of 35-to-39-year-olds has fallen by more than 10 percentage points.
Nationally, the homeownership rate fell to 63.4 percent in the second quarter of 2015, down from 64.7 percent a year earlier.