Californiaâ€™s potential first-time homebuyers (aged 25-34) numbered 5,404,486 in 2011. At the same time, the stateâ€™s homeownership rate stood at 55.3%. California homeownership has dropped steadily during 2012. It will level off around 2016 as a wave of now-tenants enter (or re-enter) the market as buyers.
Californiaâ€™s homeownership rate continues its fall in the aftermath of the Great Recession. Will the next wave of first-time homebuyers bring a sea change?
Chart updated 10/30/2012
|Potential first-time homebuyers
|CA homeownership rate
first tuesday analysis
Do first-time homebuyers influence the homeownership rate?
Over the past decade, they did not. Homeownership dropped even as the number of 25-34-year-olds (the typical age of first-time homebuyers),rose. This age group, which currently consists of Generation YThe forthcoming generation of first-time homebuyers, consisting of individuals born in the 1980s and 1990s. (Gen YThe forthcoming generation of first-time homebuyers, consisting of individuals born in the 1980s and 1990s.), has had little effect on homeownership since the crash. Why?More great information at: http://firsttuesdayjournal.com/will-first-time-homebuyers-save-californias-homeownership-rate/Â