WASHINGTON (10/28/15)--The homeownership rate for those under the age of 35 picked up in the third quarter, according to a report released Tuesday by the Commerce Department.
Recording the biggest gain since the second quarter of 2004, the homeownership rate for the younger generation climbed to 35.8% from 34.8% during the quarter (MarketWatch Oct. 27).
It was the only age group to report solid increases for the three months ending in September.
The overall U.S. homeownership rate, meanwhile, increased slightly in the quarter, but fell 0.7% on a year-over-year basis.
“The homeownership rate is generally declining across all regions and has fallen below the levels from the mid-1990s,” said Thomas McCartin, Moody’s analyst (Economy.com Oct. 27).
McCartin added that, despite the upswing in home buying for millennials, significant growth continues to elude the generation.
“The first-time buyer share of total buyers remains near post-recession lows,” McCartin said. “Young households prefer to rent rather than purchase homes.”
Rent prices appear to back that claim.
The median asking price for vacant homes for rent was $802 during the quarter, a 6.1% year-over-year increase. On the other hand, the Labor Department recently reported that rent prices only climbed 3.6% in the third quarter (MarketWatch).