Question of the Day: What Percentage of U.S. Households Own Homes?

Answer:  63.9%

Here’s the graph showing that this is the lowest rate of homeownership in the US for the past 20 years (from Marketplace.org):

fredgraph_0

Questions to ask students while they interpret this data:

  • What led to the dramatic drop in homeownership over the past decade?  Hint:  The Great Recession
  • Why do you think the rates of homeownership haven’t risen since the Great Recession?
    • Until recently, job market has been iffy
    • Banks have tighter lending requirements
  • In the Marketplace.org article, the top picture shows a house sign with the term “Bank Owned.”  What does that mean?  Good opportunity to point out to students this concept of a mortgage and that most people borrow from the bank to own a home.
  • Do they have a long-term goal of owning a home some day?  Why or why not?