According to a recently released study by The Center for Housing Policy, working families with children are less likely to own their homes now than thery were twenty-five years ago. The report studies data on homeownership and housing costs between the years 1978 and 2003.
The national homeownership rate in 1978 for all families was 65% and increased to 68% in 2003. However, homeownership rates for working families with children decreased from 63% to 60% during this same time period. Families surveyed were working and had incomes from minimum wage up to 120% of the area median family income.
The gap in homeownership between minority working class families and their white counterparts also widened during this time period. Minority families with childrensaw their homeownership rates remain at 45% for this time period. White working class families with children actually saw an increase in homeownership–from 69% to 71%.
The report speculates on some of the demographics behind this decline:
1) Working families with children are twice as likely to be single-parent homes in 2003, as they were in 1978.
2) Housing costs (mortgage, insurance, utilities and taxes) increased 30% more than incomes during this period.