There are many factors to consider when deciding whether to buy a home or continue to rent. Many prospective buyers also wonder how the numbers of renters vs. buyers breaks down by age group. Although the market has changed over the last three years, the information from the 2010 census is the most accurate available breakdown of homeownership by age group. Note that every group shows an increase from the younger category, finally dropping off at over 75 years old.
United States, 2010
Under 25 years old . . . . . . . . . . . . . . . . . . . . 22.8
25 to 29 years old. . . . . . . . . . . . . . . . . . . . . . 36.8
30 to 34 years old. . . . . . . . . . . . . . . . . . . . . . 51.6
35 to 39 years old. . . . . . . . . . . . . . . . . . . . . . 61.9
40 to 44 years old. . . . . . . . . . . . . . . . . . . . . . 67.9
45 to 49 years old. . . . . . . . . . . . . . . . . . . . . . 72.0
50 to 54 years old. . . . . . . . . . . . . . . . . . . . . . 75.0
55 to 59 years old. . . . . . . . . . . . . . . . . . . . . . 77.7
60 to 64 years old. . . . . . . . . . . . . . . . . . . . . . 80.4
65 to 69 years old. . . . . . . . . . . . . . . . . . . . . . 81.6
70 to 74 years old. . . . . . . . . . . . . . . . . . . . . . 82.4
75 years old and over. . . . . . . . . . . . . . . . . . . 78.9
The numbers for every age group are down slightly from the previous two censuses, and have likely fallen a few tenths of a percentage point further in the last three years, as would be expected in the wake of the housing crisis. This drop has brought them closer to the national mean of around 66%, which has mostly held steady for the last forty years.
Consider your personal goals
When thinking about buying a home, what other people in your age group are doing is less important than your personal time horizon. However good an investment real estate may be, first and foremost you are buying a home for yourself and your family. Consider your long-term plans and needs. As a general guideline, you typically need to stay in a home for 5-7 years in order to say you “broke even” on the purchase. So think about what these years have in store.
Common things to consider for young adults are whether you anticipate getting married or having children. Will your first marital home work for raising a family? How will your career develop in the next few years? Middle aged people often need to consider college costs for their children and the possibility of either an “empty nest,” or a parent moving in. Growing older, how will retirement affect your housing needs and repayment ability? Have you considered the potential for your own reduced mobility? Any of these factors could force you to move sooner than you thought.
These are merely common themes to consider, and every person’s situation is different. If you foresee general stability in your life over the next 5-7 years, it would be good to consider buying now, whatever your age. Even if you don’t live there forever, it may turn into a fantastic investment down the road!
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