The Last Of The Baby Boomers Are Renters Not Homeowners


The Last Of The Baby Boomers Are Renters Not Homeowners


The tail enders of the baby boom who grew up being told homeownership is the only way to go are now the fastest growing renter demographic according to the director of the Metropolitan Housing and Communities Policy Center at the Urban Institute Rolf Pendall.

He says patterns of homeownership are shifting for the over 55 year old demographic, particularly among those aged 55 to 64 years of age, where renting is becoming more common than homeownership. He says that trend is expected to continue.

Since 1990 there has been decline in the percentage of 55- to 64-year-olds owning homes. This accelerated in the wake of the financial melt down between 2010 and 2013.

Pendall predicts a 10 percent decline in the rate of homeownership for this age group between 1990 and 2030, with the numbers of renters outpacing homeowners.

"If you start out as a 44-year-old and you don't have a house, it would be very difficult for you to achieve homeownership in the next 10 years with the same probability as was true 10 years ago," he says.

"In addition, America is becoming increasingly ethnically diverse, and homeownership rates historically have been lower for Hispanics and African Americans".

Angela Boyd, managing director of the Make Room campaign, a group that advocates for affordable rents, says many Americans are hitting their 50's without sufficient a financial cushion to afford a home or even navigate a hot rental market.

"We know a third of adult Americans have no emergency savings," she says "If you don't have emergency savings, you likely don't have much in retirement savings. Now we have people getting up in years continuing to work or having to rely solely on Social Security."

Boyd says that being the case, renting, is a good option.

"People can be mobile for their job. People may not have had the ability to save for a down payment, and people have seen what can happen when you put zero percent down on your home," she says "The possibility that you can be underwater is quite real."

Read this next:

Must Read

This Huge Company Is Harnessing Mindfulness In Its Employees

This Huge Company Is Harnessing Mindfulness In Its Employees

  While some businesses have gyms and cafeterias for their staff, cloud-based software company Salesforce is giving it employees the silent treatment. T...

Are Those In-Office Perks Really That Good?

Are Those In-Office Perks Really That Good?

Having your employer give you a rent subsidy instead of a pay raise may appear to be a pretty good deal on the surface, but it may not be the best thing for...

3 Big Budget Mistakes To Avoid

3 Big Budget Mistakes To Avoid

Budgeting is all well and good when you are trying to get your financial life into order, but many people just can't get the budget to stick. They fall vict...

5 Personal Success Books You Need To Read

5 Personal Success Books You Need To Read

[caption id="attachment_93" align="alignnone" width="1698"] Books HD[/caption] One of the easiest ways to succeed in any venture is to have a mentor you can ...

6 Reasons Why You Should Start A Savings Account Today

6 Reasons Why You Should Start A Savings Account Today

A recent survey showed that 40% of Americans do not have enough money squirreled away to see them through an emergency as small as an unexpected auto repair. ...

Tumblr Is Tumbling Yahoo’s Purchase Expectations Out The Door

Tumblr Is Tumbling Yahoo’s Purchase Expectations Out The Door

Tumblr is proving not to be the cash cow Yahoo thought it was going to be , hinting it may write off the entire goodwill value it paid to purchase it. In...

Guy Spier Questions Value Financers

Guy Spier Questions Value Financers

Aquamarine Fund founder and value investor Guy Spier, founder is questioning the value of and the number of financiers in the work force today, including hi...

Hedge Fund Manager Phil Falcone Slams The Industry

Hedge Fund Manager Phil Falcone Slams The Industry

In 2012, the US Securities and Exchange Commission charged hedge fund manager Philip Falcone with securities fraud. In 2013 he was barred from the securitie...

China's Meltdown: What Exactly Is Going On?

China's Meltdown: What Exactly Is Going On?

China's financial slowdown hasn't made headlines of late, but that doesn't mean it’s over and that even residue effects won't spill into global growth and...

It Might Be Best To Hold On Before Acting On The Retirement Lure

It Might Be Best To Hold On Before Acting On The Retirement Lure

When one gets into their sixties, the idea of retiring becomes more and more attractive. But think long and hard, because the sooner you retire, the less social...

Your House Sale Profits Can Be Eaten Up In Paying Capital Gains Tax

Your House Sale Profits Can Be Eaten Up In Paying Capital Gains Tax

They say there are only two certainties in life - death and taxes. The problem is that unlike death which is an one off event, there are many forms of taxes tha...

5 Tips For the On-The-Side Business Builders

5 Tips For the On-The-Side Business Builders

Having a on-the-side small business, which you work mostly on-line after having spent some quality time with the family, while the 9 to 5’ers are sitting down...