A new study from Apartment List took a look at how veterans are faring in the housing market and discovered a staggering difference between pre and post 9/11 veterans.
According to the study, veterans are faring better than non-veterans in the key housing market statistics like homeownership rate and cost burden rate. Today, 76% of veteran households are homeowners, while only 62% of non-veterans own their home.
Veterans are also less likely to be housing cost-burdened compared to non-veterans. Not just that, but veterans also fare far better on affordability. Fewer than a quarter of veterans cannot afford their housing, which is below the national average.
However, a problem arises when focusing in on the post 9/11 segment of veterans.
Post 9/11 Veterans Struggling With Both Affordability & Homeownership
Veterans that served in the Post 9/11 Era are not faring as well as older generations of veterans in today’s housing market. Compared to these previous veteran generations, Post 9/11 veterans have astonishingly higher cost burdens. Across generations of veterans – from the Korean War to the Gulf War – cost burden rates are below 25%. However, nearly 35% of post 9/11 are cost-burdened. These young veterans are actually more likely than the average non-vet civilian to struggle with housing affordability.
Looking past the cost burden rate, homeownership rates, unfortunately, show a similar trend. 21st century veterans are far less likely than previous generations to own their own home. Despite having broad access to zero-down mortgages with favorable rates through the VA loan program, less than half of post 9/11 veterans own a home.
Obviously, recent veterans who are younger are less likely to be homeowners due to the fact that younger households are less likely to be homeowners. However, this trend holds when controlling for demographics. For more information on the study and other housing market studies, check out Rentonomics.