New study shows homeownership down 10 percent

CoreLogic's U.S. Housing and Mortgage Trends report showed homeownership rates for the 25 to 34 and 35 to 44 homebuyer age groups are down nearly 10 percent in 2010 compared to 1980.

The study found the real median income for the two age groups in 2010 was at the same level reported in the late 1970s. Median income fell 2.3 percent between 2009 and 2010, and declined 7 percent since it peaked in 1999. In addition, the report said consumers continue to spend a higher percentage of their income on housing, which leaves less money to spend on non-housing consumption.

Further, a study by the Federal Reserve Bank of Boston discovered the next generation of homeowners are less confident about homeownership since the housing bust while older respondents are more confident. The paper found that responses were strongest among respondents who experienced a personal loss during the housing market crisis, prompting them to have less trust in the market.

Respondents over 58 held stable attitudes of the value of homeownership even after price declines, while younger respondents showed drastic declines in confidence in homeownership after experiencing the market crisis. The younger respondents saw the market drop as a permanent change, as older respondents consider the decline in home prices a temporary dip in a stable upward trend.

More News