New Strategist Press

Even if the homeownership rate of 25-to-34-year-olds remains in the doldrums, the number of young-adult homeowners is likely to rise in the next few years, according to a Fannie Mae analysis. With the number of 25-to-34-year-olds in the population projected to expand by about 500,000 a year for the rest of the decade, a stable homeownership rate should result in growing numbers of homeowners in the age group.

The homeownership rate of households headed by 25-to-34-year-olds plunged from 46.7 percent in 2006 to just 36.9 percent in 2014, according to the Census Bureau's “American Community Survey.” The number of homeowners in the age group fell by 1.8 million during those years. If the homeownership rate has hit bottom and remains there, then the number of homeowners in the age group will rise by 74,000 a year. That's a big reversal from the average annual loss of 231,000 homeowners aged 25 to 34 since 2006.

Whether the homeownership rate of 25-to-34-year-olds will stabilize is a big if, however. The Fannie Mae report notes that if the homeownership rate of the age group continues to fall at the same rate of decline as occurred from 2012 to 2014, then the number of homeowners aged 25 to 34 will shrink by 113,000 a year on average from now until 2020.