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While homeownership and resilient home price data show that we do not have an ownership crisis in the U.S., we do notdiscount the affordability and availability challenges facing prospective homeowners. For many households, current
housing market conditions do represent a crisis, particularly at the younger end of the age spectrum where ownership has
been slipping. Households under the age of 35 saw the largest percentage point decrease in homeownership over the past
year (1.6), followed by those ages 35-44 (1.2). Available entry-level housing stock is particularly scarce.
Further, the data are also a reminder that roughly one-third of households rent their primary residence (and about a third of
those rent detached or attached single-family homes). Ownership could be a long-term goal for many of these households,
but affordability and stage of life may not make that practical today. {any households begin as renters and eventually
become owners.
Also, people rent for a myriad of reasons and price to purchase is not the only deciding factor. A desire or need for
geographic mobility and fnancial exibility are two notable contributors to households choosing to rent instead of own.
Some people simply prefer the renter lifestyle.
State and federal housing policies should consider the equally valid desires of renter households to have access to highquality, affordable options to rent the type of home they want in a neighborhood they would like to live in. Homeownershipis traditionally included as an aspect of achieving the American Dream, but it may not be the right or desired choice forevery household.
For perspective here, we have also charted homeownership rates in some other developed nations, as reported by theOECD. Homeownership is less common in a number of developed economies across the world than it is in the U.S. Thehomeownership rate in France is w5 percentage points lower than it is in the U.S. The difference is even more extreme inGermany where the homeownership rate is less than 41.0%.
U.S. homeownership likely faces headwinds in the months ahead due to high prices, elevated mortgage rates, limited new
supply, and a scarcity of existing homes for sale. But homeownership has not cratered and remains above historical
average levels. Growth in the number of owners has been relatively strong and it is important that government policies
and public and private investment not ignore the roughly one-third of households that rent their primary residence.

Questions? Please contact:
Paul Briggs, CRE
Head of Research & Investment Strategies
paul.briggs@roofstock.com
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This information is intended for educational purposes only and is not fnancial, investment, legal, or taa advice. Roofstock is not youradvisor or agent. Please consult your own advisor for guidance. Although Roofstock provides information it believes to be accurate,
Roofstock makes no representations or warranties about the accuracy or completeness of the information contained in this article.

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