Millennials, boomers drive down NM homeownership rates
The homeownership rate in New Mexico fell to 63.9 percent in the second quarter, a 2.7 percentage point drop from the first quarter, and down from the post-recession high of 72.8 percent in the first quarter of 2011, the U.S. Census Bureau said Tuesday.
In the Albuquerque metropolitan area, the homeownership rate fell to 62.1 percent in the second quarter, a 1.4 percentage drop from the first quarter and down from 72.2 percent in the first quarter of 2011.
The homeownership rate is defined as the percentage of housing units occupied by their owners.
Nationally, the homeownership rate was 64.7 percent in the second quarter, down from 64.8 percent in the first quarter and down from the high of 69.2 percent in the second and fourth quarters of 2004.
Todd Clarke, agent and broker at New Mexico Apartment Advisors, Inc., said the change in homeownership rates are related to changing demographics and desires of the millennial generation and baby boomers.
'Millennials are rent-based, and they want the flexibility to move at any time,' Clarke said. 'Baby boomers are getting ready to make their grand exit, and they want to be free of the equity in their houses and have the freedom to travel.'
Many boomers are downsizing when it comes to homes because they don't need the extra space and don't want to deal with maintaining large homes and yards, Clarke added. 'This relates to fundamental changes on both sides, the millennials and the baby boomers,' Clarke said.
John Garcia, executive vice president of the Homebuilders Association of Central New Mexico, said that some of the change in homeownership rates could be related to the post-recession tightened credit environment.
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