Currently Reading

Will the Pandemic Ignite a Surge in Homeownership?

Advertisement

Will the Pandemic Ignite a Surge in Homeownership?


May 19, 2020
New homeowners dancing
By fizkes

With the rampant layoffs, pay cuts, and financial turmoil, the pandemic sparking an increase in homeownership may sound like a joke, but real estate experts say that it may do just that, according to Forbes. Though the economic blows to Americans are steep, analysts say that the pent-up demand and antsy Millennials cooped up in apartments may lead to an initial increase in homeownership after the pandemic. But the homeownership rate may not indicate an actual rise in the number of households in the U.S. Instead, renters may be moving back in with family or living with friends to cut down on expenses. 

While economic slumps typically depress home buying and owning, the current coronavirus-triggered slowdown could buck conventional wisdom and lead to an increase in the U.S. homeownership rate.

Prior to the onset of the COVID-19 outbreak, which largely shuttered the economy in mid-March, the homeownership rate stood at 65.3% for the first quarter of 2020, marking a 1.1% increase from a year ago. In the last three months of 2019, the rate – at 65.1% – exceeded 65% for the first time since the end of 2013.

“Before this pandemic hit, we had one of the strongest three months of home buying activity across all ages and sectors,” said Lesley Deutch, principal with John Burns Real Estate Consulting. “Really, the industry was about the strongest it has been since the last downturn.”

Read More
 

Related Stories

Demographics

Financial Difficulties Drag U.S. Household Formation Down

If Americans continued to form households at the same rate as 2006, there would be 5.7 million additional households today. But Americans from all…

Market Data + Trends

Is Urban Flight to the Burbs Golden?

The future of urban and suburban housing post-COVID-19

Demographics

Millennials Lead in Home Service Projects and Spending

Being cooped up at home pushed Americans to spend more on home improvement projects this year instead of entertainment or travel. The National…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.