Guest post by Joe Hoft
Bloomberg reported in July of 2016 that the percentage of Americans who own their own homes was 62.9% in the second quarter, the lowest rate in more than 50 years (since 1965), according to a Census Bureau report. It was the second straight quarterly decrease in a row, down from 63.5% in the 1st Quarter 2016.
According to the Joint Center for Housing Studies at Harvard University, the downtrend in home ownership stretched to a decade in 2014. Home ownership rates fell across nearly all age groups, incomes, household types, and markets despite the affordability of first-time home buying. Home ownership declines over this time period erased all home ownership increases in the 1990’s and 2000’s.
Home ownership rates among households aged 25–34 plunged by more than 9% since 2004, and were 3% below the 1993 level and “many young adults are under severe financial pressure.”
What’s shocking about the low rates in home ownership is the fact that interest rates were at historical lows during Obama’s Presidency. With rates so low you would expect that home ownership would have increased but it did not.
(Reproduced with the permission of Mortgage-X.com)
Young people today have to spend their money on overly expensive health insurance policies or alternatively face a large tax hit. With senseless policies like this mandated through Obamacare, it’s no wonder home ownership rates are at historical lows among younger adults.
The Wall Street Journal called Obama’s recovery the weakest of the post-World War II era. Historical low home ownership rates in an environment of historical low interest rates is another example of President Obama’s horribly flawed economic policies. It’s as if the man and his administration knew nothing about economics.
The inauguration of President Donald J. Trump cannot come soon enough.