Homeownership Rates by Age Group

Bank of America Merrill Lynch economist Michelle Meyer notes that “The homeownership rate has plunged, reaching 63.9% at the end of last year, and the lowest since the mid-1990s.” In the below charts, her team takes a look at homeownership rates by age – in percentage terms among each group as well as percentage of total homes owned.

First, we look at how the homeownership rates have changed over the past 20 years (Table 1). The biggest decline in the past ten years has been among the 30-34 year olds, followed closely by the 35- 44 year old cohort. This more than reversed the gain over the prior ten years. There was a similar story for the 25-29 year olds, but not quite as extreme. In contrast, the homeownership rate for 65+ has been little changed. As we show in Table 2, the population has aged with an increasing share of households above 55 years of age (baby boomers), a notable decline of the middle-aged cohort and a slight drop in the under 35 year old group.

Amazingly, it turns out that there are more homeowners over the age of 75 than there are among people in their 20’s and 30’s combined.

Screen Shot 2015-03-11 at 12.02.42 PM Screen Shot 2015-03-11 at 12.03.11 PM

 

Meyer believes there is risk to the downside for homeownership rates owing to demographics but cites a Harvard professor who believes formation among younger families is getting underway.

Which is it? Are the age-related headwinds too much for the confidence of an improving economy to overcome?

Source:

Decomposing the homeownership rate
Bank of America Merrill Lynch – March 6th 2015

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Average Age Of Homeowners | Lisabiondo commented on May 27

    […] Homeownership Rates by Age Group – The Reformed Broker – Age Average Of Homeowners – Thebattleofliberty commented on Apr 22 [.] Homeownership Rates by Age Group – The Reformed Broker – Amazingly, it turns out that there are more homeowners over the age of 75 than there are among people in their 20’s and 30’s combined. […]

  2. Of Age Homeowners Average - Commercialloanslending commented on Jun 24

    […] Homeownership Rates by Age Group – The Reformed Broker – Age Average Of Homeowners – Thebattleofliberty commented on Apr 22 [.] Homeownership Rates by Age Group – The Reformed Broker – Amazingly, it turns out that there are more homeowners over the age of 75 than there are among people in their 20’s and 30’s combined. […]

  3. bulletproof server commented on Sep 14

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  4. immediate edge reviews 2020 commented on Sep 23

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  5. old facebook design commented on Sep 25

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  6. rpa testing commented on Nov 12

    … [Trackback]

    […] Here you will find 28477 additional Info on that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  7. Devops commented on Nov 19

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  8. scotia online banking commented on Nov 27

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  9. 안전놀이터 commented on Dec 03

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  10. anime hoodie commented on Dec 05

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  11. plumbinggiant.com commented on Dec 13

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]

  12. sell dumps with pin commented on Jan 26

    … [Trackback]

    […] There you can find 27777 more Info on that Topic: thereformedbroker.com/2015/03/11/homeownership-rates-by-age-group/ […]