November 15, 2012MEDIA ALERT
WASHINGTON, DC – Fannie Mae’s Economic & Strategic Research Group today released a new edition of Housing Insights that investigates how the housing and economic downturns have affected the homeownership and rental markets. The paper finds that homeownership rates continue to decline, particularly among young households; that single-family housing is absorbing a disproportionate share of new rental demand; and that housing affordability problems are mounting among young renters while easing for young homeowners.
Recent declines in homeownership rates among young households reflect the effects of challenging labor markets and losses of homes to foreclosure. Tightening of mortgage qualification criteria soon after the onset of the housing downturn also probably contributed to the decline in homeownership rates among the young, but in addition may have helped to create a generation of young homeowners who have housing costs that are better aligned with incomes.
Visit the Economic & Strategic Research site at www.fanniemae.com to read the full Fannie Mae Housing Insights Research Paper, as well as the FM Commentary from research author Patrick Simmons, to learn more.