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Homeownership Declines in 2015: What’s Causing the Shift?
Posted on: May 4, 2015 by Newmark Insurance
In addition to financially protecting yourself with the right Insurance Policies for Real Estate Agents, it’s vital to keep up-to-date on the trends going on within the real estate industry, in order to best market your services. According to an article published last Friday by Realtor.com, for example, a report from the U.S. Census Bureau revealed that the percentage of U.S. residents who own their homes is at the lowest point it has been for over 20 years.
Why is this? One reason is foreclosures; while there aren’t as many foreclosures today as there have been in recent years, those who were foreclosed on in the last decade have not been able to regain enough financial footing to re-purchase. Instead they are amongst the high number of renters in America now.
Another potential reason for this decline is that that mortgages are not easy to get. Even potential homeowners with good credit are finding it difficult to secure a decent home loan. Lending standards have changed significantly since the economic recession, however consumers are still struggling to increase their credit scores and therefore are forgoing homeownership until they can improve their rates.
A recent article published by US News suggested that perhaps another factor that plays a role in low homeownership rates is the fact that millennials are finding it increasingly difficult to achieve success and longevity in the labor market. Even millennials with college degrees are having a hard time finding jobs that pay well enough to balance their student debt and still have money left over to save for homeownership.
Experts in the industry expect that it will be awhile before property purchasing picks up for millennials, who are currently realtors main target audience. They predict that it will certainly get easier to buy a home as the economy improves and as more people get jobs.
In addition to keeping up on common real estate trends and news in the industry, at NewMark Insurance Services we provide superior protection from financial loss to our clients’ businesses, property and assets at affordable rates. For more information about our Real Estate E&O as well as other Business Insurance Products for the industry, please contact us today at (855) 777-6549.