How Falling Homeownership Rates Impact U.S. Economy

Sarah Steimer
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Key Takeaways

What? Homeownership in the U.S. is still an aspiration, but it may become unattainable for younger adults.

So what? The future of homeownership affects numerous American industries.

Now what? Marketers in the housing industry and beyond may need to recalibrate who is owns homes, for how long and what type of family makes up the home.

Nov. 17, 2017

Homeownership may still be the American dream, but young adults are having a hard time achieving the goal

A report from Ipsos questions whether the aspiration to own a home has declined because the ability to own has been just out of reach for long enough. The report considers how the absence of homeownership would impact the U.S. economy, construction, transportation, workforce trends, insurance, home goods, entertainment, mobility and technology.

The future of home ownership is being shaped by a number of megatrends, including:

  • Aging population: As the U.S. ages, people are staying in the workforce longer, and nearly 85% of those 55 and older want to age in place.

  • Integration of tech into the home: Homes are more connected to the outside world, and companies such as Apple and Google are vying to be at the center.

  • Urbanization: Half of the U.S. population is concentrated in fewer than 150 counties, playing into how Americans live, think and shop.

  • Changing households: Only one in five households headed by someone under 35 is a married couple family, according to the U.S. Census Bureau. People are having fewer children, having them later in life and living longer.

• Rising inequality: The top 1% of houeholds by income now control 38% of the nation’s wealth, meaning most Americans lack choices and flexibility in where they live and how they spend.

• Mobility and migration: The American mobility rate has dropped nearly in half since 1980. Only one in 10 people move in a given year, and only a small percentage of those move to a new state. Those who do cross state lines tend to be the most educated.

 

The report considers how the absence of homeownership would impact the U.S. economy, construction, transportation, workforce trends, insurance, home goods, entertainment, mobility and technology.

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Author Bio:

 
Sarah Steimer
Sarah Steimer is a staff writer for the AMA's magazines and e-newsletters. She may be reached at ssteimer@ama.org or on Twitter at @sarah_steimer.

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