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HOW HOME OWNERSHIP HAS CHANGED SINCE THE GREAT HOUSING BUBBLE It’s now been almost 15 years since the onset of the Great Recession, which, according to the National Bureau of Economic Research (NBER), began in December 2007. Younger generations, like Gen Z, were too young to even know what was going on during the housing bubble and resultant crash. Millennials, likewise, probably really felt the housing crash when they graduated into a desert of job openings and economic recession, whose fallout lasted well into the 2010s (the actual end date of the Great Recession is June 2009, according to the NBER, but its effects were felt much longer). For Gen Xers caught up in the homebuying, mortgage-dishing-out maelstrom of 2004 to 2007, the housing bubble, housing crash, and resulting recession feel very much like recent experiences, as they do for Baby Boomers as well. With U.S. Bureau Census data available for 2020, we can take a decade-long look at the changes in homeownership and housing since 2010, the year when unemployment peaked during the Great Recession. Dollar figures from 2010, 2015, and 2020 are inflation-adjusted to their respective year, rather than being inflation-adjusted to current inflation rates of 2022. Many characteristics of housing and homeownership have changed significantly since the days of the housing crash. Read on to find out the significant ways homeownership and households have changed since the housing bubble and housing crash. GROWTH IN THE SHARE OF WEALTHIEST HOUSEHOLDS Looking at the data from 2010 to 2020, the change in the share of owner-occupied households earning incomes of $100,000 or more has increased markedly. On the national level, in 2010, 16% of owner-occupied households earned incomes of $100,000 to $149,999. By 2020, the percentage of owner-occupied households earning incomes of $100,000 to $149,999 had risen to 19.2%. However, the change in owner-occupied households earning $150,000 or more really stands out. In 2010, 11.7% of owner-occupied households earned incomes of $150,000 or more. By 2020, this figure had risen dramatically to 20.5%, and this is on the national level - not some city that individually became more expensive over the years. Examining the changes in housing on the city level from 2010 to 2020, there are some startling data points. In New York City, always an expensive city to live in, a little over one-fifth (20.4%) of owner-occupied households earned $150,000 or more in 2010. However, a decade later, owner-occupied households in New York City earning $150,000 or more had grown to just under a third (32.9%). That’s an increase of 12.5 percentage-points, which is equal to an increase of 61.3% in the share of the highest-earning households in New York City. Chicago offers an even more incredible increase in the share of the highest-earning owner-occupied households since the days of the Great Recession. Back in 2010, owner-occupied households earning $150,000 or more stood at 15.3%. By 2020, however, this figure had grown to 26.9%, an astounding increase of 75.8% over the last 10 years. For more, visit Forbes.com
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