Census Data released yesterday showed that the U.S. rate of homeownership fell from 64.8% in the fourth quarter of 2018 to 64.2% in first quarter of 2019. This was a larger than anticipated drop that put an end to the steady gains that have been made since Q1 2017.

Of the four regions in the U.S., only the South saw homeownership gains, rising from 66% to 66.2%. The Northeast fell from 61.3% to 60.7% and the Midwest fell from 69.3% to 68.2%. The largest decline came in the West where homeownership fell from 60.9% to 59.8%, a drop of more than 1%.

When analyzed by age, the largest drop-off came from those under 35 years of age with the rate falling from 36.5% in Q4 2018 to 35.4 % in Q1 2019. The next largest drop off was for those aged 35 to 44 years, falling from 61.1% to 60.3%. These younger buyers, who had been driving the rise in home ownership over the last couple of years, are now finding it more difficult to find affordable housing. With the average price of housing rising at a faster rate than the average wage increases over the last several years, coupled with a shortage in the supply in start-up housing that has shifted the supply/demand equation, younger buyers are finding it harder to purchase.

Recently, however, home price growth has slowed and interest rates have fallen from 5% down to 4%. Millennials are entering into their early to mid-thirties and still view homeownership as a way of accumulating wealth. These trends have yet to appear in the numbers. As a result, many analysts feel that is quarters downward blip in the numbers might just be an aberration.

When broken out by nationality, Hispanics were the only group to see home ownership gains, rising from 46.9% to 47.4%. By income, those with income less than the median family income saw rates fall from 50.7% to 50.5% while those above the median saw homeowneship fall from 78.9% to 78%.