The beginning of 2017 marked the first time in a decade that homeownership eclipsed renting. 854,000 new buyers purchased a home, while only 365,000 new renters decided to rent. This could signal a turnaround in the decline of homeownership. A surge would increase the amount of Central Florida title insurance needed as well.

Why Not Buy?

There have been a variety of trends that have placed downward pressure on home sales. The collapse of the housing marketing in 2008 not only forced previous homeowners to rent but spooked young people. The idea of buying a home became a very risky proposition.

It’s also true that the generation now in the range of 25 – 34 years old have different values. These peak home purchasing years normally meant settling down and starting a family. However, Millennials today value experiences over objects, which gives them less incentive to buy instead of renting.

Finally, the young adults forming households have struggled to find work in fields that pay a salary that supports homebuying. Older Americans have stayed in jobs longer, meaning that there has been less room for new folks to move in as people are promoted.

Positive Signs for Homeownership

As the economy improves, a lot of the financial pressures that prevent homeownership will lessen. Young adults will increasingly have the resources to save for a home.

Many millennials want to own a home if they have the opportunity. Transunion recently found that 29 percent of non-homeowners looking for a mortgage were millennials. This is good news for real estate!

The slow growth is another good sign. A dramatic jump in homeownership is impossible unless banks significantly loosen lending requirements. Those loose requirements were what led to trouble before. Keeping requirements conservative may slow the rate of homeownership, but it’s a better financial practice for everyone involved.

As these homeowners move forward with purchases, there will be a corresponding increase in title insurance. Coverage to protect the buyer and seller in case of title errors or omissions is a vital part of the buying process.
Are you working on buying a new home in Florida? We’d love to help with your Central Florida title insurance needs. Contact us for information today!