Young Families Are Buying Homes Again

In the Washington Post, Andrew Van Dam notes that renters suddenly started becoming home buyers again in 2016. He says the primary change came among young families:

It is now apparent demographic pressure had been building since the housing crisis. Millennials were hitting the age at which previous generations began buying homes, but had put off home-buying due to slow earnings growth, a tepid labor market and soaring student loan debt….In 2016, Millennials finally began to surmount the obstacles that sat between them and homeownership.

Naturally that made me curious. So here’s the homeownership rate since 2000 for three different age cohorts:

Millennials have indeed started buying houses again. Since the trough in their homeownership rate in mid-2016, homeownership has risen by 7 percent. Younger Gen Xers have increased their homeownership rate by about 5 percent, while older Gen Xers have gone up by only 1 percent.

Homeownership rates are still below their average of the past 25 years but are clearly making a comeback. Anecdotally, new homes and condos seem to be everywhere I look here in suburban Orange County. The only question is whether the economic good times can last long enough for young workers to make up what they lost in the Great Recession.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate