For most Americans, home is more than a shelter. It is also their most valuable asset and an important savings vehicle. So how many Americans actually own the homes they live in? Have homeownership rates changed over the past 20 years?
Homeownership Rates Now
The homeownership rate, as defined by the U.S. Census Bureau, is the percentage of homes that are occupied by the owner. It is not the percentage of adults that own their home. In January, the U.S. Census Bureau released a report on residential vacancies and homeownership for the fourth quarter of 2012. The homeownership rate was 65.4 percent. If you break this down geographically, home ownership rates were highest in the Midwest (69.7 percent) and lowest in the West (59.5 percent.)
Homeownership Rates 20 Years Ago
How does that compare to 20 year ago when Inlanta Mortgage was founded? The homeownership rate for 1993 (revised based the U.S. Census 1990) was 64.0 percent. Homeownership rates vary by geographic area – see how homeownership rates differ by state here. For example, in 1993 homeownership rates were highest in Delaware (74.4 percent) and West Virginia (73.6 percent) and some of the lowest rates were in California (56.8 percent) and New York (53.5 percent).
Homeownership Rates & The Young
While overall homeownership rates have remained relatively stable since the 1960s, rates vary depending on characteristics of households. Recent research has examined the decline in homeownership rates with “heads” aged 25-44 years since 1980. This research indicates that a trend toward marrying later and the increase in household earnings risk that occurred after 1980 account for a large share of the decline in young homeownership. Read Why Has Homeownership Fallen among the Young for more information. To review homeownership rates by year and age click here.
Benefits of Homeownership
There are a number of benefits to homeownership. Here are a few reasons to consider purchasing a home while rates are low and home affordability is high:
- Mortgage interest tax decution
- More cohesive communities
- Better connected families
- Long term wealth accumulation
Get pre-approved today! Contact a licensed Inlanta Mortgage loan officer for a free consultation.
Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.
Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.