Homeownership Rate on the Decline

Home Ownership Rate on the Decline

As the recession drags on it appears that the U.S. home ownership rate continues to slip. A drastic reduction in home values has created a situation where many homewoners owe more than the value of their home. Many people end up surrendering their homes even if they can afford to pay the mortgage. These Strategic Defaults have been a big topic in the media lately. With no sign of positive recovery in sight this trend will likely continue. Homeowners are strapped and unemployment is still high.

An estimated 6.2 million homeowners owe more than their home is worth. The official home ownership rate is 67.2%, down 1.8% from its peak. There is an effective home ownership rate which excludes homeowners that are under water. The effective rate is 61.6% nationally. However is some of the hardest hit areas the rate is much lower. For instance in Las Vegas the effective rate is 14.7%! Denver's effective rate is 59.8%. Information source: Case-Shiller. 

This may have a positive impact on apartment vacancy rates over the next couple of years as homeowners become renters. Renter pool will also benefit from the echo boomer population surge.

E. Christopher Lattimer

Keller Williams Front Range Property

www.coloradoshortsalesite.com

Boulder, CO

Cell: 720.530.7291

Office: 303.440.8080

Fax: 720.293.0600

Email: chris@the-lg.com

Website: www.bouldercountyhomesales.com

 

 

 

2 Comments on Home Ownership Rate on the Decline

JUL
19
2010
425,487 Points 2 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

wow, I did not know this, thank you for sharing that info. 
12:34pm • #1

I read some more about this in a recent report by the Federal Reserve Bank of New York "The Home ownership Gap". It discusses the benefits to home ownership and it then urges a solution of mortgage principal reduction. Maybe that will get us out of the mess?
8:06pm • #2


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E. Christopher Lattimer

Louisville, CO

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Keller Williams Front Range Properties

Address: 3005 Center Green Dr., Ste 100, Boulder, CO, 80301

Office Phone: (303) 440-8080

Cell Phone: (720) 530-7291

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Residential and Commercial sales, Green Home


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