HUD Secretary Ben Carson kicked off National Homeownership Month last week by hosting a forum to assess the state of homeownership in the U.S. following the housing crisis, specifically the challenges millennials face as they enter the market in greater numbers.
June was proclaimed as National Homeownership Month by the Trump administration. This year’s theme is “Find Your Place in a New Era of Homeownership.”
In opening remarks at the forum, Carson asserted that HUD would continue to support homeownership through the Federal Housing Administration’s mortgage insurance programs, providing up to $400 billion in new loan guarantee authority. Carson added that President Donald Trump’s proposed budget will seek $500 billion in new guarantee authority for Ginnie Mae.
The forum was moderated by CNBC Real Estate Reporter Diana Olick and featured Joel Kan, associate vice president of industry surveys and forecasts at Mortgage Bankers Association; Christie Peale, executive director of the Center for NYC Neighborhoods; Jon Spader, senior research associate at Harvard Joint Center for Housing Studies; and Lawrence Yun, chief economist at the National Association of Realtors.
While noting that renting did not have the stigma it once had, Olick asked Spader why he thought millennials hadn’t entered into homeownership. Spader stated that the heart of that question was whether there has been a fundamental change to how millennials think about homeownership.
Spader stated that when asked, millennials do not express concerns regarding building finances, such as by saving through a 401K, but that the reasons they give for not entering into homeownership are more economic. They are concerned about credit history, saving for a downpayment and having sufficient income.
Yun added that there was a lack of inventory of starter homes and raising prices (with wages not rising at the same rate), which is part of the reason that homeownership is at a 50-year low.
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