The Census Bureau released the Residential Vacancies and Homeownership report for Q2 2020. According to the release, the homeownership rate increased to 67.9% by nearly 4 percentage points compared to a year earlier1. Low mortgage rates is one of the main reason that the homeownership rate was strong in the second quarter although the coronavirus outbreak.
More low‑income households became homeowners
In addition, the report looks deeper at trends among households with incomes below the national family median, which was nearly $77,000 in 2018. It is interesting to see that homeownership in this group also increased in the second quarter to 55.2% from 50.0% a year earlier. This is a very promising indicator for the real estate market. Compared to pre-recession levels, more low-income households became homeowners during the pandemic.
Homeownership Trends by Age
Homeownership rates rose in all age groups in the second quarter of 2020. Specifically, these gains continue to be concentrated among Millennial and Gen Xer households, though the share of seniors who own their home remains the highest of all age groups.
Source: National Association of Realtors, Blog and U.S. Census Bureau.
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