A recent survey by Zillow asked real estate economists and experts for their predictions on the housing market. While they had varied views on topics like mortgage rates and home values, they strongly agreed on homeownership rates.
The vast majority of respondents – 88 percent – said that they expect the homeownership rate to increase in the next five years. 84 percent said it will be improved in just two years.
In addition, almost half of the panelists said that first-time home buyers would be more active. Less than a quarter predicted a decrease in first-time home buyer activity and the rest predicted no change. On the other hand, respondents were much more split when it came to home buying activity from repeat home buyers. One quarter of respondents said it would increase, another quarter said it would decrease, and the remaining half said that it wouldn’t change.
In short, first-time homebuyers are becoming more involved in the housing market than they used to. Homeownership rate had dropped during the recession. Since then, it has started to rebound, as a stronger economy is helping first-time buyers to afford homes.