Census: Homeownership Rate 67.4% in 2Q

By
Real Estate Broker/Owner

The Census Bureau recently published their second quarter report on residential vacancies and homeownership rates which showed that the homeownership rate slipped from 68.1% from last year to 67.4% this year.

While the year over year decline in homeownership rate should not come as much of a surprise considering the number of Americans that are losing their home to foreclosure, what remains open for debate is how much farther the homeownership rate could fall.

Historically, prior to the housing frenzy that started in the late 1990's, the homeownership rate has ranged from 63-64%.  The rate peaked at 69.2% during the 4Q of 2004.

The concern is that with the foreclosure rate surging 33% year over year (source: RealtyTrac), and with the homeownership rate deteriorating, the demand for real estate will continue to be outpaced by the supply of homes.  But rather than provide incentives for Americans to invest in real estate and absorb the excess supply of homes, Washington is continuing to pursue a failed homeownership policy

Comments (3)

John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

Mark I think we will eventually see that normal percentage of home owners again.  We still have a rough road ahead of us it seems.

Jul 27, 2009 01:09 AM
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Could this be more proof that the market is just trying to correct itself and that trying to artificially increase home ownership with easy qualifications and tax benefits may do nothing more but make for a bigger fall!

Todd Clark - www.LivingBeaverton.com

Jul 27, 2009 06:21 PM
Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

I believe the norm of 63-64% was a stable percentage of owners.  Higher than that they are dreaming.  There will aways be a percentage of renters, and we must allow that from here on out...we may have a very large percentage of former home owners that cannot buy with damaged credit and higher unemployment rates...with that in mind, it could drop further than the base.

Jul 28, 2009 08:26 AM