For the first time in a decade, more U.S. households opted for homeownership than renting in Q1.
Within the first three months of the year, 854,000 new-owner households were formed while only 365,000 new-renter households were established, according to Census Bureau data, the Wall Street Journal reports. While new homeowners outpaced new renters, the homeownership rate still declined to 63.6% from 63.7%. Still, many experts are confident the increase in new-owner households will eventually lead to a jump in the homeownership rate.
The homeownership rate slid to a 50-year low of 62.9% in Q2 2016, and Rosen Consulting Group said that drop cost the U.S. economy more than $300B last year. Given the data, experts foresee an increase in homeowners fueling future economic growth. Though not all experts are so confident. Wharton School professor Susan Wachter said the homeownership rate will continue its plight and settle around 50% by 2050, pushed down by student-debt burdens, rising rents and shifting demographics.
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