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.

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)