Chris Herbert, managing director of the Joint Center for Housing Studies at Harvard University says that there is a broad shift in the housing market in the country.
The State of the Nation’s Housing report for 2018 shows that since the Great Recession, homeownership is slowing inching up. The rise in homeownership marked up at 64.2% by the end of last year. Herbert said this is a “dramatic turnaround in the homeowner market.”
“We are more confident that there is a turnaround in homeownership,” he adds.
Last year, the number of U.S. homeowner households reached a record high of 76.2 million. While there is an increase in homeownership, there is a significant decline in rental households.
“Over the last year, rental households actually fell by a couple hundred thousand,” he said. “There is significant slowdown in demand against the backdrop of what has been healthy supply.”
The demand for apartment complexes spells bad news for developers who are engaged in the creation of thousands of luxury rental units.