New Info on Homeownership

Posted by: Peter Coy on February 23, 2006

New numbers from the Federal Reserve show some strange shifts in homeownership rates by age. An article is here about the most recent triennial survey. Although the survey was conducted in 2004, this is the first time the numbers have seen the light of day.

Anyone care to explain why homeownership rates rose slightly for ages up to 54, fell for 55 to 74, and rose a lot for ages 75 and up?

Reader Comments

AnonymousChicago

February 24, 2006 8:10 AM

Explanation? We need to see the numbers, because the thought that someone over 75 years old is buying property is counter to what I've experienced. They are more likely to sell and go into senior apartments. That report seems faulty.

Yariv

February 24, 2006 8:56 AM

There are three ways to explain this:
1) With housing levels where they are, prior equity is becoming a must to play the game.
2) Economist Robert Shiller has a nice analysis of the Ownership Society effect. Essentially, the more talk we have of social security and other Federal programs not actually expected to offer a safety net - the more of a psychological drive people will have to own "equity." Currently, equity is synonymous with housing (5 years ago it was stocks and in 5 years it can be gold).
3) The past 20 years has seen a boom in retirement communities for ages 55+

Yariv

housingpanic

February 24, 2006 10:36 AM

gotta love those greedy little boomers. trillions of dollars of US debt passed on to their kids. and now they sell at the top of the bubble (to their kids) and cash in so they can play golf for the next 40 years.

and the younger generations are left holding their bags.

brilliant

there's going to be intergenerational paybacks coming up. it'll start with a repeal of the drug benefit. the younger generations when they realize they've been had are going to be pissed. broke, poor, and pissed.

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BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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