Question of the Day: What Percentage of U.S. Households Own Homes?
Here’s the graph showing that this is the lowest rate of homeownership in the US for the past 20 years (from Marketplace.org):
Questions to ask students while they interpret this data:
- What led to the dramatic drop in homeownership over the past decade? Hint: The Great Recession
- Why do you think the rates of homeownership haven’t risen since the Great Recession?
- Until recently, job market has been iffy
- Banks have tighter lending requirements
- In the Marketplace.org article, the top picture shows a house sign with the term “Bank Owned.” What does that mean? Good opportunity to point out to students this concept of a mortgage and that most people borrow from the bank to own a home.
- Do they have a long-term goal of owning a home some day? Why or why not?
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.