Dive Brief:
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The number of Americans who own their homes dipped to the lowest level since 1989 in the first quarter of this year—but the report came with some potentially good news for homebuilders.
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U.S. homeownership dropped to 63.8% from 65% in the first quarter of last year, the U.S. Commerce Department reported on Tuesday. At the same time, however, the number of households increased for the second consecutive quarter.
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Even though those who are forming new households are renting homes instead of buying them. The numbers indicate that millennials are finally moving out of their parents’ basements and into the housing market. Their next logical step: homeownership.
Dive Insight:
The move from renter to owner could take some time, of course, but economists are calling the numbers “progress.”
"This is a signal of something very positive that should flow through the economy,” Steve Blitz, chief economist at ITG Investment Research in New York, told Reuters. “We should see better numbers in terms of home sales, housing starts and spending around housing than we are now."
