The Story of Homeownership in the United States
Owning a home has long been a cornerstone of the American Dream. Although the market has shifted over the last century, homeownership continues to be a goal many hope to ultimately achieve.
1890-1930
65% of the population is rural
From 1890-1920, homeownership hovered around 47% with the majority living in the rural areas. Farm ownership started to decline in the early part of the 20th century as more people, especially immigrants moved to cities. The government did not set policies-housing at that time was dictated by the market.
1930-1960
The Great Depression saw 100s of 1000s lose their homes.
In 1937, the federal government implemented programs to reduce foreclosures and aid new construction. Homeownership rose post-WWII, climbing to 64% by the end of 1969.
1970 to today
After the 2007-2008 subprime mortgage crisis, regulatory changes were created in 2010 to protect consumers.
The Federal Reserve raised interest rates in March 2022 in an attempt to corral inflation after rates hit record lows during the pandemic years.
Looking Ahead-2025 Market Projections
- Median Home Sales Price: $404,000
- Existing Home Sales: 5.4 million
- Mortgage Rates: 5.4%-5.9% by the end of 2025
- New Housing Starts: 1.25 million
Buying or Selling a Home in 2025
Preparing ahead of time as much as possible will help make the process go smoother.
If you’re looking to buy
- Get preapproved by a qualified mortgage lender.
- Start a designated down payment account.
- Hold off on other major expenses.
If you’re looking to sell
- Start getting organized and declutter.
- Spruce up your curb appeal.
- Make needed repairs and cosmetic updates.
If you’re a renter the number one thing you can do is improve your credit by paying down debt. Be sure to research first-time buyer programs.
If you or someone you know is considering a move, feel free to contact me with any questions. I’m here to offer clear, concise information you can trust.
For a printable version of this newsletter, click here.
Sources: 1. Fdrlibrary.org/housing 2. nber.org 3. huduser.gov/periodicals/ushmc/summer94/summer94.html 4. businessinsider.com/personal-finance/mortgages/will-mortgage-rates-go-down-this-year 5. nar.realtor/magazine/real-estate-news/contract-signings-reach-a-new-high-for-2024 6. noradarealstate.com/blog/experts-predict-housing-market-recovery-in-late-2024-through-2025 7. noradarealstate.com/blog/housing-market-outlook-2025-key-trends-and-predictions/
