Home Ownership Trends

What is happening to the American dream of home ownership? Home ownership hit a low of 63.7% in the first quarter of 2015, down from its high of 69.2% home ownership in 2004.

This decline represents 6million U.S. households that have transitioned to rental housing.

Some of the reasons may have to do with tougher mortgage underwriting standards in the form of higher down payments and credit score requirements. Certainly, many people are still skittish following the great recession in the housing market in 2007-8.

Traditional home ownership rates between 1965 - 1995 were between 63-65% of the population, so this latest dip may represent a return to more "normal" rates of home ownership. Yet there are some disturbing factors affecting this.

Millennials, who are forming households now, are facing their own issues of debt, with student debt now at a record $1.2 TRILLION.

And as the income gap grows, the level of home ownership is much lower for people of color. Renting will be the only option for many minority families for the foreseeable future.

Investors will want to consider rental properties as a good income source for the coming years.

Happy investing!