Nationally, according to the U.S. Census Bureau, the homeownership rate in the 3rd quarter increased to 64.4%, up from 63.9% a year ago. Why? We have millions more first time homebuyers as adults under 35 saw their homeownership rate rise from 35.6% a year ago to 36.8% now.
According to Genworth Mortgage Insurance, “In the past 2 years, first-time homebuyers have purchased at least 1.9 million homes each year. That is more than the pace of household formation, meaning that the transition from renting to own is the more powerful driver of housing demand.”
This greater demand to buy has helped cause home prices to rise rapidly, which is now causing a slowdown in home sales as prices have risen too fast, especially when combined with rising mortgage rates.