Home ownership in the US is on a decline recently. Data from the Census Bureau reveals that ownership rate is at its lowest level since 1965.
If you have access to good mortgage rates or a housing grant in Ogden and elsewhere, you’re lucky. Other people aren’t as fortunate. Furthermore, the new administration’s housing policies are sure to bring many changes.
The current administration reversed the FHA mortgage insurance premium cut early. You may remember that the cut was previously announced in the final days of the previous administration. Perhaps this is due to public clamor about restricting the FHA due to its most recent failures. But the effects could be all-encompassing. With the premiums reverting to their old numbers, first-time homebuyers might encounter problems. This is due to their tendency to rely a lot on the FHA’s help.
Down the Line
Data from Harvard’s Joint Center for Housing Studies show more potential scenarios. They cite three: the base, low, and high. The first projection deals with constant homeownership rates. This will happen if home ownership rates stabilize. Keeping the numbers constant also ensures that distribution across age, ethnicity, and family type will be affected greatly.
As for the other two, the low scenario is the more likely one given the current administration’s bold first move. Experts believe that if the decline continues, it will do so through 2020, although there is hope that rates will stabilize afterward. For the high scenario, rates may resemble levels from before the housing boom.
A Rise in Renting
Real estate watchdog Trulia sees renting gaining ground within the next few years. The number of owners has been on a steady decline since 2006. On the other hand, renter numbers continue to increase. It’s worth noting that millennials (people between 18 and 34 years old) comprise the biggest chunk of the renter demographic.
Many other changes are in store for American home ownership. It’s worth watching out for any updates down the road.