Homeownership Declining Among Families With Children, Study Finds - 6/7/2004 - Real Estate Home House Condo

Homeownership Declining Among Families With Children, Study Finds

The homeownership rate for all families with children decreased from 70.5% in 1978 to 68.4% by 2001, the study found. Among low- to moderate-income working families with children, the homeownership rate dropped from 62.5% to 56.6% during that same period. By comparison, 65.2% of all households owned their homes in 1978 and that increased to 68.3% by last year.

The study defined working families as households earning less than 120% of the local median income, but more than the full-time equivalent of the minimum wage.

“For the sake of this nation’s families with children, and the communities in which they live, we must do more to ensure a range of decent, affordable housing opportunities for those within low- to moderate-income levels,” said Bob Reid, president and CEO of the Center for Housing Policy. “It is important to remember that many of these same families also provide vital services on which communities depend, such as police officers, fire fighters and elementary school teachers.”

During the 1978-2001 time frame of the study, the number of working families with children rose from 11.9 million to 17.5 million and their share of all U.S. households climbed from 15.4% to 16.4%.

Homeownership rates for working families with children decreased among both couples and single-parent households, “so the decline cannot be attributed solely to changes in household type,” the study concluded. “It is likely that stagnant incomes and the rising costs of homeownership played important roles.”

According to Census data, the median sales price of a new home in 1978 was $55,700, or four times the $14,258 median income of a working family with children, the study said. In 2001, that home cost $175,000, or five times the median income of $35,000.

For more of the study, "Working Families With Children: A Closer Look at Homeownership Trends," click here.