US Homeownership Declining (Patreon)

I talk a lot about the important of owning a #castle.  The reason it is the easiest way to build wealth. 

Sadly, in the US and prob many other countries around the world, we are now below 60% of homes owned by the primary residents.  This means that less than 60% of homes in the United States are owned by the people who live in them. This is a decrease from the 2007 peak of 69.2%, and it has been declining since then. The decline has accelerated in 2023 due to the rising interest rates.

There are a few reasons why the percentage of homes owned by the primary residents has been declining. One reason is the rising cost of housing. Home prices have been increasing faster than wages, making it more difficult for people to afford to buy a home. Another reason is the increase in student loan debt. Many young people are graduating from college with large amounts of debt, which makes it harder for them to save for a down payment on a home.

The rising interest rates are also a factor in the decline in homeownership. When interest rates are high, it becomes more expensive to borrow money to buy a home. This can make it out of reach for many people.

The decline in homeownership has a number of implications. It can make it more difficult for people to build wealth, as they are not building equity in their homes. It can also make it more difficult for people to move, as they may not be able to sell their homes for a profit. Additionally, the decline in homeownership can lead to a decrease in the quality of neighborhoods, as there are fewer homeowners who have a vested interest in maintaining their properties.

h/t to Sanjay for sharing the chart.