Infographic: Revealing Relationship Between Homeownership and Household Income

October 05, 2012 by on Infographics

There are a lot of factors that impact the rate at which Americans own homes – especially household income. Often, the rise or fall of household income has much to do with how many americans can afford to own homes. Throw in inflation and interest rates and it is easy to see what factors were involved with the decline of homeownership rates since 2004 and the housing market collapse in 2007.

Check out the infographic below for an effective illustration of the crucial relationship between homeownership rates and household income.

Revealing Relationship Between Homeownership and Household Income

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8 Responses to “Infographic: Revealing Relationship Between Homeownership and Household Income”

  1. October 08, 2012 at 10:25 pm, Amanda Foth said:

    Nice chart. I fail to see the link between interest rates and median home prices. I say this because there seems to be little correlation between price and interest rate. For example, 2002, housing prices were low but interest rates were high. In 2005 the median home price raised by almost $20k but interest rates remained constant. Whereas from 2009 to 2012 interest rates continued to drop but home prices shifted up and down.

    I see the decrease in home interest rates being caused by a lack of demand not median prices. Because loan requirements become much stricter in 2008/09, there were less individuals that qualified for loans, dropping loan closings. To increase demand, the feds lowered interest rates to stimulate the mortgage market and by association creating sales in the real estate market.

    That is my take on the figures. What do others think about it?

  2. October 09, 2012 at 8:32 am, Ulises Arcidiacono said:

    Pretty good details on the chart. I wonder how all these values will be impacted with the coming elections? Should we wait some time and then see what is going on and based on that make a decision regarding investing on the real estate market?
    My point is that I am trying to understand this chart and foresee what is going to happen on the real estate market and decide the best time to invest or not.
    Amanda brings a good point that right now the interest rates are low and the government is stimulating the mortgage market, do you know/think this is going to stay as it is now or even improved if we have a new president?
    Any feedback regarding this matter?

  3. October 09, 2012 at 8:48 am, Joe Harris said:

    Nice details on the chart! There are so many variables that can be taken into account and might modify these values. For example homeownership varies greatly based on household characteristics, particularly age, family type and income. Over the past few decades there have been distinct changes in a number of demographic characteristics that influence homeownership.
    Just my two cents.

  4. October 09, 2012 at 9:45 am, Bryan said:

    I think home interest rates were lowered to bring in more buyers. I know we had a desperate time period where we needed more buyers and more money spent to see a raise in the economy. This infographic is interesting to pick at and shows a lot of what America should know and bring awareness. I also think having a international investors will play a big roll in the housing markets.

  5. October 09, 2012 at 10:59 am, George said:

    It is interesting to see how the inflation rate has decreased on the last year and also the home interest are getting lower every year.
    Those are good news for investors!

  6. October 09, 2012 at 2:28 pm, Harold said:

    I expect that interest rates will stay low until the real estate market and/or the economy stabilizes. I believe the Feds are afraid to rock the boat by inching rates up now that we are beginning to see a slow recovery. We know that the Fed can’t raise rates for at least the next 12 months, even under the most optimistic scenario, barring the cataclysmic case of a U.S. sovereign debt crisis, which is clearly unlikely at this stage. Inflation is simply not a problem at the moment.

  7. October 09, 2012 at 2:31 pm, Cassie said:

    I believe that rates in the U.S. will remain around these levels for at least until the end of Barack Obama’s term, and indeed,with Mr. Bernanke at the helm, we expect them to remain close to zero until the Central Bank is forced to raise them by market forces. This is not a good choice, of course, but it is the choice made and communicated by the Federal Reserve on many occasions, and the best course for traders is not discussing the wisdom of the Fed, but finding ways to exploit it profitably in the meantime, however incredibly wrong it might appear at times.

  8. October 10, 2012 at 8:34 am, Mark said:

    Great infographic with a quality information. Thanks for share!

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