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| Lynn Fisher |
WASHINGTON, DC -- By 2024,
the U.S. will create between 14 million and 16 million new households,
according to the Mortgage Bankers Association.
Of those, as many as 13 million will be owners and as few as three
million will be renters.
The MBA predicts over the
next decade, Americans will emerge from their childhood bedrooms or rental
apartments and start becoming homeowners again.
The MBA says home ownership
has plunged to its lowest level in half a century. But over the next decade the
country will see a surge in new household formation, with many of those families
choosing to own rather than rent.
The MBA says that as many
as 1.3 million additional owner households will be created each year. That is a
significant pickup from the recession, when the number of owner households has
been basically flat.
“It’s a huge amount of
housing demand any which way you cut this,” said Lynn Fisher, MBA’s vice president of research and economics.
The MBA says the
homeownership rate rose from less than 64% in the late 1980s to more than 69%
in the mid-2000s before dropping to below 64% again in 2015.
The MBA says if current
homeownership rates by age and race persist, the report’s authors expect the
homeownership rate to grow modestly to 64.8%. If those rates of homeownership
by group revert to higher long-term trends, they expect the homeownership rate
to rebound to 66.5%.
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