As featured on UrbanTurf.com
Census data released at the end of April shows that, for the first time since 2006, the number of owner-occupied households increased faster year-over-year than the number of renter households.
From the first quarter of 2016 to the first quarter of 2017, the number of owner-occupied households nationwide grew by 854,000 — over twice the number of new renter households, which grew by just 365,000. This reversal in household formation could be the first sign of a shift since the housing crisis over a decade ago, which led to significant growth in the rental housing market at the expense of homeownership.
The U.S. homeownership rate has reached 63.6 percent, a slight increase from the 63.5 percent rate seen in the first quarter of 2016. However, this shift has not been consistent in every metropolitan area. The homeownership rate in the DC metro area actually decreased year-over-year, from 63.1 percent in the first quarter of 2016 to 62.6 percent in the first quarter of this year.
As Trulia reports, while the Trump Administration’s proposed tax reform may gradually increase the homeownership rate, this growth will not be without some turbulence. While an increased standard deduction may help renters save toward a down payment for a house, it may also lessen the tax benefits of homeownership for lower-income households by negating the amount of mortgage interest that can be itemized.