The homeownership rate in the United States is at its lowest level since 1965, according to a recent report from the US Census Bureau. This is actually an all-time low for homeownership in this country.
The main agency of the US Federal Statistical System found that homeownership is down to less than 63 percent. The last time the number was that low was in 1965, when the U.S. Census first started to track the total number of homeowners.
Just a decade ago, the nation’s overall rate of homeownership reached its highest level ever, 69 percent, with seemingly everyone and their sister being in a position to buy a house. Of course, the housing and financial markets eventually collapsed and brought an end to the “ownership society,” so the recent news about a continued decline in home owners has not come as a shock to many financial experts and interested real estate investors. That’s because homeownership rates have been trending in the wrong direction for a while, especially among millennials who are opting to rent rather than purchase homes due to debt-related struggles.
The problem is that the US homeownership rate could drop further in the months ahead. That’s because it does not appear that young people burdened by crippling student loan debts will be in a position to stop renting anytime soon.
In New Jersey, the real estate market has been particularly dire. According to real estate information providers like RealtyTrac, New Jersey currently leads the nation in home foreclosures as more and more NJ homeowners are struggling to keep up with monthly mortgage payments and other debts. Meanwhile, the rental market in New Jersey and elsewhere remains strong, which bodes poorly for a potential rebound in the homeownership market because it means that rents are on the rise – leaving renters with less and less money to use as a down payment on a future home.
For more information, view the CNBC.com article, “Millennials Cause Homeownership Rate to Drop to Lowest Level Since 1965.”
If you are struggling to cover the monthly mortgage payments on your home in New Jersey, or if you just need assistance with a debt-related issue, you should talk to a qualified real estate and debt management attorney immediately. Joel R. Spivack, Esq., is an experienced real estate and debt relief lawyer who can assist you throughout the home buying, home selling, or home foreclosure process. Contact Mr. Spivack anytime to schedule a free consultation.