Annual Harvard study shows home ownership is on the decline, while rentals are increasing
Nation: The annual study of home ownership rates from Harvard University’s Joint
Center for Housing Studies (JCHS) shows purchase of homes remains low, but with rentals on the rise.
A likely partial cause for the uptick to rentals versus purchases involves the median household income increasing only 1.2 percent in 2014, while the median sale cost for homes already on the market increasing 4.7 percent, and new homes rising by 6.6 percent, according to the JCHS report.
Additionally, younger potential home buyers are saddled with more student loan debt, with job compensation and opportunity remaining lower than the noted comparative cost for purchasing homes versus renting.
The JCHS report outlines the homeowner market as being the lowest in 50 years, at only 63.7 percent.
Many of those no longer owning homes have moved into the rental group, with the possibility of returning to home ownership being limited due to higher standards for credit rating, decreased amount of funds being set aside for savings, and desire to live in cities or areas more dominated by apartment housing.
The housing market continues to recover, but at a moderate rate and seemingly, partly, contingent upon the continued increase to wages across the country commensurate to the increase to home-buying costs, and systems in place to diminish student loan debt.
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