New Homeownership Stats Great For Apartment Owners

New Homeownership Stats Great For Apartment Owners
By: Nicholas A. Dunlap, CPM

Today’s HBR Stat of the Day shows the direct correlation between uncertainty of income and declining marriage rates in the US among people ages 25 to 44 and the declining rates in homeownership.

There was 5% total growth between 1962 & 2007 from 62% to 67%, but those numbers have now dropped to 57%. Since 1980, marriage rates in the United States have also dropped 15% and married couples are more likely to own their own homes. Not only is there uncertainty in income, there is also uncertainty in the for-sale housing market. Many of these would-be homeowners have seen their friends and family lose their homes and are now dealing with home values that have dropped, leveled, dropped again and are now skipping along what many presume to be the bottom, thus, they are skeptical as to whether or not now is the time to buy.

This uncertainty translates into opportunity for apartment owners and developers. In fact, these numbers have caused apartment investors to continue on in acquistion mode, taking advantage of low interest rates, and have most recently caused developers to put the shovels back in dirt, breaking ground on new projects. This is of course shared by asset and property managers who are able to piggy back off of their customer’s uncertainty and their client’s optimism.