According to a recent Bank of America study about changes in U.S. home ownership, home ownership has been steadily dropping since 2013 and is currently at 62.9%, while rental occupancy is at its peak at 93.3%
In fact, home ownership has dropped in every age category over the past three years, with the largest drop in the 65+ category (Baby Boomers), followed closely by the Millennials.
Home Ownership: Baby Boomers vs. Millennials
The most common reason for this drop in Baby Boomer home ownership is the decision to sell their homes and move into apartments or assisted living communities, which allows them to take advantage of their home equity with minimal tax repercussions.
Among Millennials, home ownership is becoming an even greater challenge due to the recent competitive housing market, a slowly recovering economy and ever increasing student loan debt.
Millennials have surpassed Baby Boomers as the nation’s largest living generation, according to population estimates by the U.S. Census Bureau. This age group is not only the largest segment of the U.S. population, but also represents the largest group of renters, with 51% of the entire rental population being under 30 years old. National Multifamily Housing Council.
Given the current real estate climate, this is the perfect time to expand your investment portfolio with rental properties. Not only is it a way to further diversify your investments but you have the advantage of immediate payback in the form of rental income, tax deductions and depreciation.