Homeownership Rate Falls to mid-1990's Level
According to U.S. Census data, the share of Americans who own their homes settled at about 64.8% in the first three months of this year – down from 65.2% in the fourth quarter of 2013. The rate has fallen steadily since peaking at 68.9% in 2006, due in part to the foreclosure crisis. But even after two years of housing recovery, the pace of homeownership has not returned to pre-recession levels and is, in fact, the lowest it has been since 1995.
Economists suspect the growing number of young adults leaving the family home and striking out on their own is skewing the owner-occupancy rate. They primarily lease apartments, which raises the renter rate and lowers the homeownership rate – but they'll contribute to higher homeownership levels down the road. Tom: The info in this article leads me to believe that there will be a big pent-up demand for housing in the future. Certainly that is the case locally, as our home inventory has fallen to slightly under 4 months... a strong seller's market.