Skip to main content

U.S. HOMEOWNERSHIP RATE FALLS AGAIN, NEARING A 48-YEAR LOW


U.S. HOMEOWNERSHIP RATE FALLS AGAIN, NEARING A 48-YEAR LOW
Source: C.A.R.
The nation’s homeownership rate hit a 48-year low in the second quarter of 2015, and results from the first quarter of 2016 have dashed hopes that the homeownership rate had finally hit a bottom in 2015, as it slid back almost to that level in the first quarter of this year, according to the U.S. Commerce Department.

Making sense of the story
  • In the first three months of this year, the rate was at 63.5 percent, not seasonally adjusted. That is down from 63.8 percent in the fourth quarter of 2015.
  • When adjusting for seasonality, the homeownership rate in the first quarter also fell slightly to 63.6 percent from 63.7 percent in the fourth quarter of last year.
  • Jonathan Smoke, realtor.com®‘s chief economist, commented, “The decline in the homeownership rate is definitely showing signs of bottoming out. Most likely the homeownership rate is going to be stabilizing or even could be rising again in another year or two.”
  • The percentage of homeowners was lowest in the West, at just 58.7 percent, according to the report. The region includes super pricey cities like San Francisco, San Jose, and Seattle.
  • They were highest in the Midwest, at 68.9 percent, and the South, at 64.8 percent. Homeownership stood at 60.4 percent in the Northeast, according to the report.
  • The continued declines in the homeownership rate in part reflect a growing number of renter households. Some 363,000 new renter households were formed in the first quarter compared with the same time last year, about twice as many as the 177,000 new owner households.
  • Troublingly, this was the second consecutive quarter when the number of new households formed was anemic, with the data showing just over 540,000 new households formed in total in the first quarter. In the third quarter of 2015, the number of renter households alone increased by 1.3 million.

Comments

Post a Comment

Popular posts from this blog

Some home shoppers are calling it quits, convinced that prices have peaked

Two years ago, Mike Saavedra moved to Southern California, equipped with a new high-paying healthcare job and a plan. The former Arizona resident would rent by the beach while becoming familiar with neighborhoods where he may want to purchase a house. But a few months after starting his search, the Manhattan Beach renter cut it off. It was, he decided, the wrong time to buy. “I definitely think home prices are slightly overinflated,” Saavedra, 48, said. And he thinks there’s a good chance they’ll fall. “I would kind of like to wait and see if that happens.” After nearly seven years of sometimes fevered price hikes, the Southern California housing market has  slowed markedly  in recent months. Sales have fallen from year-ago levels and price appreciation has shrunk. In Los Angeles and Orange counties, year-over-year price increases peaked at 8.2% in April and have declined every month since. In October, home prices in those counties rose 5.5...
Post a Comment
Read more

Most Expensive U.S. Home Sale Ever: Billionaire Ken Griffin Closes On $238 Million New York Penthouse

A Manhattan penthouse is now the most expensive home ever sold in the United States. Hedge fund billionaire Ken   Griffin closed on an apartment under construction at 220 Central Park South this week for around $238 million. A spokeswoman for Griffin confirmed the sale, which was originally reported by Wall Street Jurnal  The deed is not yet available in city property records.  The figure destroys the previous New York City record of $100.47 million set in 2014; Computer billionaire Michael Dell was recently exposed as the owner of that penthouse in nearby ONE57. The prior national record was also set that same year when Barry Rosenstein, another hedge fund billionaire, purchased an East Hampton spread for $147 M. Since then, nine-figure sales have been largely concentrated in and around Los Angeles.  However, Griffin, with a net worth of $9.9 billion, is no stranger to massive real estate purchases. Just this week it came out that he spent $122 ...
Post a Comment
Read more

The Perfect Morning Routine for Successful People

Do you struggle to get through the morning and feel like you can't get anything done before noon? You're not alone. Plenty of people prefer nights to mornings but have to get up early anyway. If you're stuck bumbling through your morning, follow these steps to mimic the mornings of successful people. Prepare the Night Before . You don't have to be a successful morning person to start the day off right. Set out your clothes the night before, prepare your lunch for the day, and organize your work and task list. Everything will be ready to go when you wake up, even if your brain isn't. Make a List of What You Want to Accomplish . It's easy to feel overwhelmed when you can't keep track of what you need to do. Each day, review your to-do list of things you want to accomplish. You can also create stretch goals — things you want to do if you have more time. This will help you plan your day before it even begins. Do the Hardest Tasks First . The most successful...
Post a Comment
Read more