In this article, I plan to divulge those markets that are likely to see slowing price growth in 2016 and possibly, a downward correction. The primary data sources that I used for my analysis were the Case-Shiller Index and the Federal Housing Finance Agency (FHFA). I chose these two providers as they both prepare indexes on home values using the repeat sales method. That is to say, they use data on properties that have sold at least twice to capture the true appreciated value of each home.
Reasons for this theory are plentiful and include amenities that apartments offer, flexibility when it comes to moving and changing jobs, and inability to afford a home given the crushing student debt load that many are carrying. So will this be the renter generation? Let’s take a look at the data.
When I read statements like this, it always drives me to dig into the data to see what is going on. The data that everyone uses to track homeownership is provided by the U.S. Census Bureau, which publishes quarterly stats on ownership rates dating back to 1965.
Exactly 10 years ago this month, then-Federal Reserve Chairman Alan Greenspan was asked if he had any concerns regarding the housing market. At that time, he emphasized that he saw no sign of a nationwide housing bubble, but he did have concerns over “froth” in the market and pointed to a big increase in the purchase of investment properties — particularly in second homes.