More Americans Chose To Own A Home Than Rent In Q1

Dated: 05/28/2017

Views: 44

According to the latest report from the US Census Bureau, more Americans chose purchasing a home over signing a lease to rent in the first quarter of 2017. 

This marks the first time since 2006 that the number of new homeowner households outpaced the number of new renter households. Of the 1.22 million new households that were formed in the first quarter, 854,000 were new-owner households making the jump straight to homeownership rather than renting first. 


Image title



That means that the homeownership rate amongst new households was 70%! 


This is huge news as the national homeownership rate is currently 63.6% and has only ever come close to this figure in the second quarter of 2004 when the homeownership rate reached an all-time high of 69.2%. 


A recent Wall Street Journal article pointed to the uptick in first-time homebuyers coming to market as a reason for the jump: 

The return of first-time buyers is accelerating. In all they have accounted for 42% of buyers this year, up from 38% in 2015 and 31% at the lowest point during the recent housing cycle in 2011, according to Fannie Mae, which defines first-time buyers as anyone who hasn’t owned a home in the past three years.” 


Ralph McLaughlin, Trulia’s Chief Economist, had this to say about what a bump in new homeowner households could mean for the housing market: 

Strong renter household formation is one of the reasons why the homeownership rate has continued to drop since the onset of the housing crisis, so any sign this trend is reversing is something to take note of. We look forward to future releases of these data to determine whether this is a statistical blip or a trend.” 


Bottom Line:

As more and more potential first-time buyers realize their ability to buy a home without having to rent first, not only will the homeownership rate benefit, but so will the overall economy. 


Image title


Russell Banki-713-480-0889 (ALHS) Accredited Luxury Home Specialist (CNE) Certified Negotiation Expert Best Priced Properties LLC Certified Expert Home Buying and Selling Advisors. (CHSA)(CHBA) Ask us about our Smart Home Buying and Selling Strategy. CALL OR TEXT. As local real estate experts in The Woodlands, Spring, Shenandoah, Magnolia, Montgomery, Conroe and Greater North Houston/Houston Metro areas we can save you valuable time & money! Contact us today. It would be our pleasure to help you with all your residential/commercial buying, selling or investment needs. Client First! We believe our clients should feel confident and benefit when purchasing and selling real estate! Sponsored by Hite Properties Brokerage


Blog author image

Russell Banki Texas REALTOR®

Texas REALTOR Hite Properties Cell: 713-480-0889 Office: 936-270-8090 x 109 E-fax: 936-270-8774 Best Priced Properties Team Montgomery County TX Real Estate Experts Client First! We believe ou....

Want to Advertise on this Site?

Latest Blog Posts

Purchasing Sooner Rather Than Later Could Save You Thousands Over The Terms Of Your Loan

What If I Wait Until Next Year to Buy a Home?We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained

Read More

Best Priced Properties Team Your Residential Real Estate Resource

Honest, knowledgeable, resourceful and care about their client's individual needs. Your Montgomery County Real Estate Experts specializing in new construction, relocation, first time home buyer,

Read More

Do Not Spend A Penny

When you're in the process of buying a home, it's important not to accrue any new debts - especially after you've been pre-approved! This can (and likely will) affect whether you will actually get

Read More

Historically May And June Are The Best Months To Sell Your Home

This Just In: Data Says May is the Best Month to Sell Your Home According to a newly released study by ATTOM Data Solutions, selling your home in the month of May will net you

Read More