Older Americans buck trend of decreased homeownership
Overall, homeownership is down eight percentage points, from 71% to 63%.
These findings are based on data from Gallup's annual Economy and Personal Finance poll, combining results from two periods of those April surveys, specifically 2001 to 2009 and 2010 to 2017.
Homeownership grew after 2001, peaking at 73% in 2007 as many bought homes using subprime mortgages.
Homeownership held at 70% through 2009 after the housing bubble burst and amid the financial crisis but has not returned to that level since.
Younger adults, low- and middle-income Americans, and those living in the West have experienced above-average drops in homeownership.
But declines are apparent among groups with traditionally high ownership rates, including upper-income Americans.
Among Americans living in households with incomes of $100,000 or more, homeownership has dropped below 90% since 2009.
Senior citizens have been immune from the trend of declining homeownership. Between 2001 and 2009, an average of 81% owned a home. Since then, 82% report owning their home.
One reason for this stability is that many older Americans may own their home outright because they paid off their mortgage in full or they sold their house and paid cash to buy a smaller, less expensive home.
In either case, they would no longer pay substantial monthly mortgage payments, and their ability to afford a home would be less tied to receiving a regular and substantial paycheck than younger Americans' ability to afford a home is.
Also, to a lesser degree, state and federal programs may assist seniors with purchasing or remaining in a home.
The federal government provides grants to help low-income Americans, including seniors, find housing.
And certain states have programs or tax laws that give seniors property tax relief, making homeownership on a fixed income more affordable for them.
Changing work patterns among seniors may also be a factor in their stable ownership rates.
Seniors are the only age group among whom the percentage employed increased rather than decreased between 2001 to 2009 and 2010 to 2017.
This change could be related to changing eligibility rules for Social Security benefits as well as a desire among the oldest members of the baby boomer generation to continue working past age 65.
Although the vast majority of seniors are not working, more of them are, and thus more may be able to afford mortgage payments if their houses are not yet paid off. ■