Moody’s: Echo boomers to reverse declining homeownership – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here.

Print Friendly

It is a well known fact that homeownership in the US has been on a decline, a trend that started even before the financial crisis. Now Moody’s predicts this trend will begin reversing next year.

Dotted curve is Moody’s projection (Source: Moody’s)

Their explanation has to do with demographics. Baby boomers are moving into the highest homeownership group by age, while “echo boomers” (children of baby boomers) are getting to the age at which they are significantly more likely to own a home than the younger age group.

Moodys: – Demographics will also generate much of the gain in homeownership over the next decade, with a growing share of households aging into the highest homeownership groups. Baby-boomers are aging into the 65 and older cohort, the age group with the highest homeownership rate, while echo boomers have entered the 30- to 45-year-old cohort, which traditionally makes the largest gains in homeownership.

Historical data tends to support this assumption. The jump in ownership from the 25-29 cohort to the 30-34 is the sharpest – which is where echo boomers are now transitioning.

Source: Moody’s

 

SoberLook.com

Spread it!Tweet about this on TwitterShare on FacebookShare on LinkedInEmail this to someonePrint this page

Keep track of the insanity of the Fed, Primary Dealers, the US Treasury, other central banks and a whole cast of nefarious characters as they drive markets in the Wall Street Examiner Professional Edition Fed Report and Treasury update. Try the Professional Edition risk free for 30 days!