The homeownership rate is a tabulation of households that are owners; and in Miami, the share of people who own their homes is lower than it was in 2007 – significantly lower.
A report from Apartment Listing put Houston’s current homeownership rate at 57.8 percent. That is down 8.9 percentage points from the city’s 2007 rate, and about 6 percent below the nation’s average 2016 rate of 63.4 percent – which represents a 48-year low for the country.
| Miami | |
|---|---|
| 2007-2016 Change | -8.9% |
| 2016 Avg. | 57.8% |
| 2015 Avg. | 58.6% |
| 2014 Avg. | 58.8% |
| 2013 Avg. | 60.1% |
| 2012 Avg. | 61.8% |
| 2011 Avg. | 64.2% |
| 2010 Avg. | 63.9% |
| 2009 Avg. | 67.1% |
| 2008 Avg. | 66% |
| 2007 Avg. | 66.6% |
There are two big trends defining the city’s decline.
1. An age problem
In the wake of the downturn, Miami’s rebound was quick, propelled by a strong international demand that has only just recently started to falter. However, while skyrocketing home price appreciation told the story of a healing market, other forces – such as stagnating wages, debt and dwindling affordability – pushed local buyers out of the homeownership. Across all age groups the homeownership rate in Miami fell from 2007 to 2014 (the latest year data is available), Apartment Listing confirmed. But the declines were steepest among Millennials (12.1 percentage points), 35 to 44 year olds (15.8 percentage points), and 45 to 54 year olds (12.4 percent). The future of Miami’s home market hinges on those age groups purchasing homes.
| Miami | 18-34 | 35-44 | 45-54 | 55-64 | 65+ |
|---|---|---|---|---|---|
| 2014 | 26.5% | 46.9% | 60.1% | 70.8% | 77.3% |
| 2013 | 26.5% | 50% | 62.9% | 71.3% | 77.6% |
| 2012 | 28.7% | 51.5% | 64.4% | 72.3% | 79.3% |
| 2011 | 31.1% | 53.2% | 65% | 73.4% | 78.5% |
| 2010 | 30.6% | 56.9% | 66.4% | 75.3% | 79.2% |
| 2009 | 32.4% | 58.2% | 67.8% | 76.2% | 79.5% |
| 2008 | 36.2% | 62.1% | 69.5% | 76.1% | 79.5% |
| 2007 | 38.6% | 62.6% | 72.4% | 77.6% | 79.3% |
| 2007-2014 Change | -12.1% | -15.8% | -12.4% | -6.9% | -2% |
2. A race problem
Homeownership rates have also declined among Miami’s racial demographics; but again, the decreases were disproportionate among groups, as are the most current rates, the report showed. Seventy-three percent of non-Hispanic white residents in the city were homeowners in 2014, as were 67 percent of Asian residents, after both groups fell 5.2 percentage points from 2007. Over the seven-year period Apartment Listing tracked, Hispanic homeownership in the city fell 7.7 percentage points to 52 percent, while African American homeownership dropped 9.6 percentage points to 43 percent.
Those rates still compare favorably to national rates during the same year – in which 41.7 percent of African American households and 45.7 percent of Hispanics were homeowners – but mark a disturbing trend in minority homeownership, especially considering the local gains in Hispanic residents. Plenty have speculated Miami’s market is slowing to a
| Miami | African American | Asian | Hispanic | Non-Hispanic White |
|---|---|---|---|---|
| 2014 | 43% | 67% | 52% | 73% |
| 2013 | 45% | 69% | 53% | 74% |
| 2012 | 46% | 69% | 55% | 74% |
| 2011 | 48% | 73% | 56% | 73% |
| 2010 | 50% | 72% | 56% | 76% |
| 2009 | 50% | 68% | 57% | 75% |
| 2008 | 50% | 70% | 59% | 78% |
| 2007 | 52% | 73% | 60% | 79% |
| 2007-2014 Change | -9.6% | -5.2% | -7.7% | -5.2% |