Gen X Home Ownership on the Rise
May 2, 2016
Could Generation X be staging a comeback into the housing market? While the home ownership rate for other age groups is dropping, Gen X home ownership is increasing in 2016.
The home ownership rate for Generation X was 58.9 percent in the first quarter of this year, up 0.5 percent year-over-year, according to the latest data from the Census Bureau. Overall, the nation’s home ownership rate was 63.5 percent in the first quarter, one of the lowest on record.
Read more: Home Ownership Rate Nears Record Lows
An increase in Gen X home ownership has been long-awaited by many in the industry. Housing analysts have said that the lack of Gen-X home owners has been creating a “hole” in the market because the age group has mostly been stagnant, not trading up into larger homes and causing a very limited entry-level market for first-time home buyers. “The short supply of these starter homes is driving prices up and making them more unaffordable for first-time buyers,” according to a recent article at the Construction Dive.
Home ownership rates for households 65 and older was 78.8 percent, decreasing 20 basis points from a year ago. However, the largest decline in the home ownership rate was among 45 to 54 year olds, which saw an annual drop of 90 basis points.
Source: “Gen-X Homeownership Continues Rising in the First Quarter of 2016,” National Association of Home Builders’ Eye on Housing (April 28, 2016) and “Gen X Back in the Housing Game Despite Overall Dip in U.S. Home Ownership,” Construction Dive (April 29, 2016)
Updated: November 23, 2020