Aging Baby Boomers Boost Ownership Rate
Homeownership gains during the 1990s were the strongest since the 1950s, according to separate studies conducted by USC and the nonprofit Fannie Mae Foundation.
The USC study revealed that aging baby boomers were responsible for most of the increase in the homeownership rate. As older baby boomers moved from the 35-44 age group to the 45-54 group, they moved from a group with a 66.2% homeownership rate to one with a 75.3% rate.
The Fannie Mae Foundation report found minority households were a key factor behind strong growth in homeownership. The number of U.S. homeowners reached 69.8 million in 2000, a gain of 10.8 million from 1990, the study said.
Racial and ethnic minorities accounted for 40% of the increase, up from 27% during the 1980s. Minorities accounted for more than 95% of homeowner growth in California and Hawaii and 80% in New York.
Favorable economic conditions, including low unemployment and interest rates, and government and housing industry efforts to expand homeownership also contributed to growth, the studies found.
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