Dive Brief:
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In 2005, half of adults younger than 40 owned their homes. By 2013, that number had dwindled to 42.2%, according to a new study by the Federal Reserve Bank of St. Louis.
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But young homeowners aren’t the only ones leaving a key aspect of the American dream behind: Homeownership in the 40 to 61 age group also declined during that time, from 76.9% to 72.1%.
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The only age group whose homeownership remained stable was adults 62 and older. In that cohort, homeownership increased 1 percentage point.
Dive Insight:
The probable reason more young homeowners than middle-age or older adults have given up their mortgages: That age group recovered about a third of the money and assets they lost during the recession, while members of the other two groups recovered nearly all of theirs, according to the study. And future prospects don’t look good for the under-40 set: One policy analyst who contributed to the report noted, “Those declining levels may not rebound quickly, if at all.”