The increase in the homeownership rate in the middle of the last decade extended to all age groups but was most pronounced among individuals under age 30. These increases coincided with looser credit conditions that enhanced household access to mortgage credit along with evidence of less risk averse attitudes towards investment in homeownership. Following the crash, these trends have reversed and homeownership rates have largely reverted back to the levels of 2000. The drop in the homeownership rate from an all-time high of 69.2 in 2004 to 66.4 percent in the first quarter of 2011 reflects a decline from unsustainable levels to something closer to historical averages, and while the homeownership rate may have bottomed out, it could fall another one or two percentage points due to tightened credit and other factors
