WHAT ARE THE REAL REASONS PEOPLE AREN’T BUYING?
If you follow the Motley Fool you know, this guy makes sense! And few can spell things out so clearly…..
Mortgage rates remain near all-time lows, job prospects are getting better for educated individuals, and ever-increasing rent make buying a house a financially practical choice. So, why is the homeownership rate at its lowest level in 48 years despite these compelling reasons to buy?
The first-time buyer segment can make or break the housing market
Just 63.4% of U.S. households own their homes, down from a peak of 69.2% in 2004. During the past year, 123,000 new homeowner-based households were created, a stark contrast to the 1.3 million renter-based households that have formed.
One of the biggest reasons for the low homeownership rate is the lack of first-time homebuyers in the market. In fact, the most recent data shows that only 32% of 2015 purchase transactions come from first-timers, the lowest level in nearly 30 years.
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