Owning houses unaffordable for US young adults

The decline in homeownership since 2004 has been most apparent among young adults as well as among black, lower-income and unmarried households in the U.S., said a new study from the Pew Research Center.

Homeownership in the country stands at its lowest level in at least 20 years, according to the study released on Thursday. As of the third quarter of this year, only 63.5 percent of households own their homes, down significantly from the modern peak of 69.0 percent reached in 2004.

In households headed by adults younger than 35, homeownership fell sharply from 43.1 percent in 2004 to 35.2 percent today, the study said.

The decline has been nearly as large among households ages 35 to 44 (16 percent). In contrast, homeownership has fallen just 3 percent among households headed by those 65 and older, from 81.1 percent at its peak in 2004 to 79.0 percent today.

Across major racial and ethnic groups, only 41.3 percent of black households own their homes, a 16 percent decline compared with 2004. Among white households, 71.9 percent are homeowners, down 5 percent from 2004.

The decline in homeownership has also been somewhat steeper among lower-income households than among their middle and upper income counterparts.

In 2005, homeownership rates among those in the lower income tier (a household income below about 44,000 U.S. dollars based on a three-person household) peaked at 52.9 percent. Today, 47.1 percent of households in this income group own their homes, a drop of 11 percent.

source: Xinhua