More Americans Chose to Own a Home Than Rent in First Quarter of 2017


According to the latest report from the US Census Bureau, more Americans chose purchasing a home over signing a lease to rent in the first quarter of 2017. This marks the first time since 2006 that the number of new homeowner households outpaced the number of new renter households.

Of the 1.22 million new households that were formed in the first quarter, 854,000 were new-owner households making the jump straight to homeownership rather than renting first.

That means that the homeownership rate amongst new households was 70%!

This is huge news as the national homeownership rate is currently 63.6% and has only ever come close to this figure in the second quarter of 2004 when the homeownership rate reached an all-time high of 69.2%.

A recent Wall Street Journal article pointed to the uptick in first-time homebuyers coming to market as a reason for the jump:

“The return of first-time buyers is accelerating. In all they have accounted for 42% of buyers this year, up from 38% in 2015 and 31% at the lowest point during the recent housing cycle in 2011, according to Fannie Mae, which defines first-time buyers as anyone who hasn’t owned a home in the past three years.”

Ralph McLaughlin, Trulia’s Chief Economist, had this to say about what a bump in new homeowner households could mean for the housing market:

“Strong renter household formation is one of the reasons why the homeownership rate has continued to drop since the onset of the housing crisis, so any sign this trend is reversing is something to take note of. We look forward to future releases of these data to determine whether this is a statistical blip or a trend.”

Bottom Line

As more and more potential first-time buyers realize their ability to buy a home without having to rent first, not only will the homeownership rate benefit, but so will the overall economy.


Featured Posts
Recent Posts
Archive
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

 859-621-4221

Lexington Ky Real Estate Pros, The Real Estate Agency Weesner Realty Team are one of the highest-rated local groups on Zillow. With a company focus on Web, Mobile, Social plus a premium listing on realtor.com, Trulia and Zillow, the Weesner Realty Team is Lexington Kentucky's Real Estate Group. The best Lexington Ky Real Estate company with the pulse on the Lexington Ky Real Estate market. Top real estate agents rated highly on Zillow in the Lexington Ky Real Estate market. If you are looking for an agent or company in Lexington, The Weesner Team should be a great fit. With the Weesner Agent/Brokers we can evaluate recent foreclosures, for sale by owner in Lexington Ky, and off-market listings. We have relationships when it comes to real estate agencies,real estate agents, real estate appraisers, real estate consultants, real estate developers, and commercial real estate needs. We are the real estate broker/agency for Lexington Ky Real Estate