The homeownership rate in the U.S. has fallen to a 62-year low of 62.9 percent, in part due to a lack of buying activity from young adults.
Business Insider reports that less than 40 percent of people age 25 to 34 own a home, a 10 percent-point drop from 10 years ago, and a roughly five percentage-point decrease from 20 years ago. Ownership rates are down for adults age 35 to 44, as well.
"There has been a secular decline in the incidence of homeownership for people aged 25 to 64," says a blog post on Liberty Street Economics. "Why this secular decline is occurring is unknown. Some potential explanations are declining real incomes for some households and changes in tenure preferences, perhaps related to increased urbanization."
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