Alerts

The Future of the U.S. Real Estate Market (Part 2)

Taken from the January 2012 Intelligent Investor
 
This is a continuation from Part 1 of this 3-part series. Click here to read Part 1.
 
Historical Examination of Home Ownership Rates
The home ownership rate was fairly stable prior to WWII, ranging from about 43% to 48%. During the Great Depression, Washington created numerous subsidies in order to boost demand (e.g. government-insured loans from the VA).
By the late 1960s, home ownership soared to nearly 64% where it would largely remain for several decades, buttressed by several additional subsidies and a transformation in housing finance.
The baby boom effect also led to the surge in home ownership. Since most first-time homebuyers are between 25-40 years of age, most baby boomers bought their first home in the 1970s.
After experiencing a large drop in home ownership rates in the 1980s (the reasons are mixed; some say inflation, others say tax rate cuts, others say reduced affordability), the 1990s was the period of the housing boom.

To continue reading please login and subscribe

Only clients who subscribe and members have access to the article

Print article

Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.

These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.

Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.


0:00
0:00