Categorized | Finance and Mortgage

Home Ownership Reaches Lowest Rate in Over 45 Years

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There was once a time in the United States when home ownership was revered, and everybody was looking to buy a home. That mentality, however, has quickly changed as the housing market continues to fall apart. With foreclosures becoming frequent occurrences, and the overall economic outlook worsening by the day, many people are giving up on the dream to own a home in favor of renting.

In fact, the rate of home ownership has fallen to just fifty nine percent, the lowest it has been since 1965. That number factors in those that have already lost their homes, and those that will definitely lose their home in the near future. There are a number of reasons as to why more people in the United States are switching to renting, though the biggest reason is likely the dismal state of the job market and economy. Other factors, such as declining home values, credit limitations, and better rental options, have contributed to this change as well.

Analysts at Morgan Stanley have also attributed the change to the fact that those that do want to buy a home are unable to do so because it is becoming harder and harder to get a mortgage. The government has given up on promoting the idea of home ownership for everybody, and the private mortgage market has all but dried up.

Some experts believe that the real estate market has finally hit rock bottom, and that the number of homeowners may once again start to increase, but others have insisted that it is far too early to make any such prediction.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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