Homeownership rates are among some of the lowest in decades across the country and in Indiana, according to data recently released from the U.S. Census Bureau.
The number of American homeowners dropped to 63.5 percent in the first quarter of 2016, down 0.2 percent from the same time last year.
It’s part of an overall downward trend in homeownership over the past 10 years . According to Census data, homeownership is down nearly 6 percent in Indiana compared to 2005.
The number of people owning homes peaked right before the recession. Now, the downward trend is starting to level off.
“Now we see an opportunity to see the market turn around but maybe a little stronger economic growth would be needed to get more people back into the home buying market,” says Jerry Conover, Director of the Indiana Business Research Center.
More renters also impact the market.
“The rental market really has hurt us somewhat because rent has risen about 3.7 percent, which is double the rate of wage growth,” says President of the Indiana Association of Realtors Nancy Smith.
All age groups were affected by the drop in homeownership rates.
The Midwest saw the highest homeownership rates in the country in the first quarter of this year, with 68.9 percent of residents owning their homes.