The Dream on Hold: 3.6 Million Fewer Families with Kids Own a Home Compared to 10 Years Prior
The big fallout during the housing crisis followed by air-tight lending rules, an alarming shortage of entry-level homes, and skyrocketing home prices are the main items on a long list of reasons fewer and fewer young families have a home to their name. The number of families with minor children who own their home has decreased by almost 3.6 million in one decade (2006-2016), while the number of families with children living in rentals has increased by 1.9 million over the same period of time, according to U.S. Census Bureau estimates.
As of 2016 (the most current Census estimates), 14.3 million households with minor children rent in the U.S. (up from 12.4 million in 2006), representing 33% of all renter households. By comparison, there are 22.1 million families with minor children that own their home (down from 25.7 million in 2006), representing 29% of owner households.
In the big scheme of things, 10 years is just a blip on the radar. These statistics show the tremendous effects of this relatively short but eventful period of time on American families. These 3.6 million fewer owner households are families who lost their homes in foreclosures or otherwise, they are young families who are unable to overcome the current financial barriers to become homeowners, and they are also homeowners whose children grew up and no longer fall into this category. Additionally, there are other contributing factors. The birthrate in the U.S. is declining, people are having children later in life, and the cost of raising a child has soared.
In the 10-year period between 2006 and 2016, renters with children in the U.S. have increased by 16%, while homeownership has decreased by 14% for the same demographic. The rise of renting and the decline of ownership among families with children is not only confirmed in all 30 largest U.S. metropolitan areas, but it’s also very prominent in many of them.
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