American Dream: Home Ownership Rates See Huge Drop In U.S. And Nevada
Owning a home has always been an important part of achieving “The American Dream.” But not anymore. In fact, it appears many in the younger generation do not view home ownership as a goal. Or, they just can’t afford a home at this time. These facts have impacted Nevada’s home ownership rates significantly.
Nevada Sees A Huge Decline In Home Ownership Since 2000
Recently, RubyHome Luxury Real Estate conducted a deep dive into home ownership rates in the U.S. What they found out about Nevada is rather alarming. Basically, home ownership rates were already pretty low in The Silver State back in 2000. According to the numbers, about 64% of Nevada’s population owned their homes instead of renting. As of 2022, that number has decreased to approximately 60%.
Furthermore, RubyHome Luxury Real Estate compares those numbers to the rest of the states in the U.S. At this point, it appears Nevada has seen the seventh largest decline in home ownership in the nation. The average decline per state was 1.3%, yet our state’s home ownership rate declined by a massive 5.8%.
Here’s How Nevada Compares To The Rest Of The U.S.
Evidently, Nevada’s decline in home ownership rates isn’t the worst in the country. The Commonwealth of Virginia takes that dubious honor. They dropped by a whopping 8.8%. North Dakota takes the second spot, with a decrease of 7.5%. Ohio and Connecticut share third place at 7.4%. Then, it’s North Carolina and Georgia tied for fifth at 7.3%. So, even though Nevada is next in seventh place, home ownership declines in our state aren’t as drastic as in others.
Why Have Home Ownership Rates Decreased Drastically?
So, the question now becomes, why are home ownership rates decreasing across the United States? Moreover, why are the declines this drastic in the top seven states listed in this survey?
Eventually, a quick internet search brought me to Census.gov for an analysis. For the most part, things really changed after “The Great Recession” of 2007-2009. Before that, home ownership rates among 25–34-year-olds in the U.S. had spiked. By now we know that was because of risky lending practices. It seemed like anyone could get approved for a mortgage loan prior to 2007.
Of course, since the housing market crash, lending practices have tightened. Interest rates for loans are soaring. Not only that, but home prices have increased dramatically. Many in the younger generation may actually have the goal of home ownership. However, it has become a lot tougher to achieve those goals in the recent economy. Let’s hope things change for the better real soon.
