Although the US is in the middle of a financial crisis, we did, however, achieve a rather surprising feat- U.S. homeownership rate has hit its highest level since 2008. Currently sitting at 69.7% up from 65.3% only a few months earlier.
This milestone has largely been attributed to COVID related worries regarding living space, and record low mortgage rates. This number is even more surprising when taking into account high unemployment rates and various income disruptions.
The key demographic for this boom? Young buyers. Homeownership for buyers under 35 rose to 40.6% in June, the highest reported numbers in 12 years.
Ralph McLaughlin, chief economist for Haus, a co-investment platform for home buyers, told Bloomberg that the COVID-related economic meltdown and low mortgage rates combined to make home-buying surprisingly attractive.
“Mortgage rates are the icing on the cake for households that were thinking about buying,” McLaughlin said. “[Buyers] found an unexpected opportunity during the worst economic downturn America has seen since the Great Depression.”