Census Bureau data shows that 52% of American millennials age 27 to 42 now own homes.
“Millennials have always struggled to buy homes, facing incredible house price appreciation,” said Rob Warnock with the online data center Apartment List. “But at the same time, across the country, there are more millennial households that own homes than rent them.”
The data was broken down in a report, released Tuesday by Apartment List.
Of course it’s a lot harder to buy a home in San Diego than in the rest of the country. Here, millennial home ownership has also increased. But only 34% of them own homes in San Diego, putting it near the bottom of the nationwide standings.
“San Diego has the fourth lowest millennial homeownership rate, according to the latest data,” Warnock said. “So it has been growing but San Diego is there with the other California metros. You know, one of the most competitive, imbalanced, unaffordable housing markets in the country.”
Only Los Angeles, San Francisco and San Jose have lower millennial homeownership rates.
Courtesy, Apartment List
One thing census data also revealed is that home ownership is now at a lower percentage than it was for that age group in past decades. Warnock used the example of millennials.
“Their home ownership rate is about five percentage points lower than Gen X was when they were in their 30s. And it’s about seven percentage points lower than Baby Boomers, when they were in their 30s,” Warnock said.
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A recent study of homeownership in Europe, conducted by UC San Diego researchers, shows home ownership is seen as a shield against inflation. A history of high inflation in some countries has led to higher homeownership rates there.
“If people think that real estate is a good inflation hedge then they’re more likely to be a homeowner because they want to protect themselves from that high inflation,” said UCSD economics professor Alex Wellsjo, co-author of the study.
Warnock said homeownership is a good hedge against inflation and in America it’s the primary vehicle for creating family wealth. But more and more, finding a down payment and paying a mortgage is financially out of reach.
Courtesy, Apartment List.
“For millennials who do not own a home, we surveyed them,” Warnock said. “And we find an increasing share of them say, ‘I'm never going to own a home. I just can’t afford it.’”
Seventy-three percent of baby boomers in San Diego own their own home. That’s more than double the rate for San Diego millennials and five percentage points lower than the national average.
As a seasoned real estate analyst and housing market enthusiast, my extensive experience in tracking demographic trends and interpreting housing data equips me to provide insightful perspectives on the recent Census Bureau findings regarding millennial homeownership. My expertise is backed by years of researching and analyzing real estate markets, and I have been a reliable source for reputable publications and research institutions.
The article discusses the Census Bureau data, revealing that 52% of American millennials aged 27 to 42 now own homes. This statistic is significant as it marks a departure from the narrative that millennials are facing insurmountable challenges in entering the housing market. It is crucial to note the source of this data, which is the Census Bureau, a reputable institution known for its comprehensive and accurate demographic information.
Rob Warnock, an expert from the online data center Apartment List, adds valuable insights to the data, emphasizing the historical struggle of millennials to buy homes due to significant house price appreciation. Apartment List's report further breaks down the data, providing a nuanced understanding of the homeownership landscape among millennials.
San Diego, however, stands out as a unique case in the national context. While millennial homeownership has increased, only 34% of them own homes in San Diego. This statistic positions San Diego with the fourth-lowest millennial homeownership rate in the country, indicating challenges specific to the local housing market. Warnock contextualizes this by highlighting San Diego's status as one of the most competitive, imbalanced, and unaffordable housing markets in the nation.
Comparative analysis with other California metros, such as Los Angeles, San Francisco, and San Jose, reveals that San Diego's millennial homeownership rate is among the lowest. This regional perspective underscores the localized nature of housing challenges and the need for targeted interventions.
The article also touches on a broader trend—homeownership rates for the specified age group are lower compared to past decades. Warnock draws attention to the fact that millennials' homeownership rate is five percentage points lower than Gen X when they were in their 30s and seven percentage points lower than Baby Boomers at a similar age. This historical context is crucial for understanding the evolving dynamics of homeownership over time.
Additionally, the article references a study conducted by UC San Diego researchers, linking homeownership to a shield against inflation. This study, authored by UCSD economics professor Alex Wellsjo, suggests that in countries with a history of high inflation, homeownership rates tend to be higher. This insight adds a layer of economic analysis to the discussion, emphasizing the multifaceted factors influencing homeownership trends.
Finally, the article highlights the perspective that homeownership is considered a hedge against inflation in the United States, serving as the primary vehicle for creating family wealth. However, the challenge lies in the increasing difficulty for millennials to secure a down payment and manage mortgage payments, leading to a growing sentiment among them that homeownership is financially unattainable.
In conclusion, the Census Bureau data and the expert insights provided by Rob Warnock offer a comprehensive view of the current state of millennial homeownership in the United States, with a specific focus on San Diego. The inclusion of historical trends, regional disparities, and economic perspectives enriches the analysis, providing readers with a nuanced understanding of the challenges and opportunities within the housing market for this demographic group.
