The U.S. home ownership rate increased in 2017 for the first time in 13 years which is great news for the housing industry. There has been a gradual shift in favor of owning over renting, led
Leach Partners Are Bullish On 2018
The U.S. home ownership rate increased in 2017 for the first time in 13 years which is great news for the housing industry. There has been a gradual shift in favor of owning over renting, led by Millennials who are moving into their peak earning years. 64.3% of Americans were homeowners in 2017 which is still below the long-term average of 65%. People under 35 are at 36% over 34.7% a year ago. Overall, there were 1.5 million new owners in 2017 and 75,000 fewer renters.
On the down-side, interest rates are rising, although they are still historically low. Home inventory remains low, which is good for sellers, but causes many buyers to become frustrated and drop out of the market.
We see consumer confidence growing in 2018 and unemployment continuing to drop. Changes in corporate tax rates have already led to increasing wages and investment which will lead to increased confidence. We see inventory increasing as homeowners see continued demand. As Millennials start families, apartment living will become less attractive and they will continue to become home owners. On the other end of the spectrum, Baby Boomers will continue to keep the "active adult" market hot.
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Meet the Leach Partners – Doug and Denise. Doug has over 25 years of experience in real estate. He spent most of his career working in new home construction and sales. Doug’s background, as well....