Housing Facts You Need To Know:
- OWNERS AND RENTERS – The 111.7 million households that existed in the United States on 9/30/08 were split 68/32 between 75.9 million owners and 35.8 million renters. The 121.4 million households in the United States on 9/30/18 were split 64/36 between 78.1 million owners and 43.3 million renters (source: Census Bureau).
- NOT A PENNY – 39% of Millennials have accumulated no funds for their eventual retirement. Millennials were born between 1981-97 and are age 21-37 in 2018 (source: Personal Capital).
- STAYING PUT – Between 2016 and 2017, 6 out of every 7 Americans (86%) lived in the same house or apartment on a year-over-year basis, i.e., they did not move (source: Census Bureau).
- MORE JOBS – The number of construction jobs nationally grew by +330,000 in the last 12 months (through October 2018), reaching 7.3 million for the first time since April 2008, just before the global real estate crisis hit (source: Associated General Contractors of America).
- THEN WHAT DO THEY DO? – As many as 60% of American households will be unable to generate retirement income equal to at least 75% of their pre-retirement income, i.e., retirement income from Social Security, employer-sponsored retirement plans and non-qualified accounts established with after-tax money (source: Adam Bee and Joshua Mitchell 2017 study).
- USE TIME TO YOUR ADVANTAGE – $522 invested at the beginning of every month for 40 years earning 6% per year will accumulate to $1 million. $1,021 invested at the beginning of every month for 30 years earning 6% per year will accumulate to $1 million. The calculations ignore the impact of taxes and are for illustrative purposes only and are not intended to reflect any specific investment alternative (source: BTN Research).
- ONE YEAR LATER – The average 30-year fixed rate mortgage was 3.92% at Thanksgiving 2017, representing a $473 monthly principal and interest payment per $100,000 borrowed. The average 30-year fixed rate mortgage was 4.81% at Thanksgiving 2018, representing a $525 monthly principal and interest payment per $100,000 borrowed (source: Freddie Mac).
Courtesy of Mortgage Market Guide
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