For years now, everyone has been blaming the Millennials for stalling the housing recovery because of their reluctance or inability to purchase a home, but it may be the cohort right before them – the generational cuspers, or those born from 1978 to 1982 – who started this trend. This age group now has the lowest homeownership rate in decades. They’re best defined as not quite Gen-X, not really Millennials, but stuck somewhere in between.
Real Estate Economy Watch recently reported on a study conducted by Chris Porter, a senior manager with John Burns Real Estate Consulting. Porter discovered that Americans within the 30-to-34 age range now have the lowest homeownership rate of any similarly aged group that came before them.
Back in 2012, this same group had a 47.9% homeownership rate, which is 6.5 percentage points lower than what those five years older had achieved at the same point.
Oddly enough, it seems this crowd bought homes at a faster clip when they were younger, only to get caught in the subprime crunch. The same study shows this group recorded the highest homeownership rate for those in the 25-to-29 age category back in 2007, before the market crash.