Photo: Robert Clark
The US national homeownership rate has seen its longest quarterly streak without a decline in over 10 years.
The homeownership rate has either risen or remained flat over the last seven consecutive quarters, thanks to a strong bump in homeownership among young adults and Hispanics, according to a report released yesterday by the listing site Zillow.
But the Trump administration’s immigration policies could negatively impact Hispanic homeownership.
The national homeownership rate was 64.2 percent (seasonally adjusted) in the first quarter of 2018, up 0.2 points from the previous quarter and 0.6 points higher than a year ago — the highest reading since the third quarter of 2014.
This was the longest uninterrupted streak without a quarter-over-quarter decline since a 15-quarter run that began in the third quarter of 1999 and ended in the first quarter of 2002.
The homeownership rate has increased the most in adults under 35 over the last year, rising 1 point to 35.3 percent — the largest recorded gain among generational groups.
However, it is still 8 percentage points lower than it was in the first quarter of 2005, which Zillow says is a striking indication of just how hard the Great Recession impacted younger Americans even as older groups remained somewhat more protected.
Among racial and ethnic groups, the non-seasonally adjusted homeownership rate decreased or remained flat for all major racial and ethnic groups in the first quarter except among Hispanics.
The homeownership rate among Hispanics increased 0.8 percentage points to 48.4 percent — its highest reading since the first quarter of 2010.
And according to Zillow, the bump in homeownership among young Americans and Hispanics could be correlated.
“On average, Hispanics homeowners tend to be younger than other racial and ethnic groups, so some of the rising homeownership rate among Hispanics is tied to the rising homeownership rate among young adults nationwide,” says the Zillow report.
Regionally, annual gains in homeownership in the South countered declines recorded in the Midwest and West, and the stagnant growth in the Northeast.
Over the last couple of years, the national national homeownership rate has hovered near the all-time record low recorded in July 2016, and a sharp rise in the renter population is one reason. However, the trend has started to shift over the last few quarters.
In each of the past three quarters — most notably in the fourth quarter of 2017 — homeowner households have increased sharply while the number of renter households has remained mostly flat, “a reflection of the increasingly frenetic pace of the home purchase market over the past few months,” Zillow writes in the digital release.
Click here to read the entire release.