Real Estate

Homeownership rate continues to hover near 50-year low

Industry awaits spike in Millennial homeownership

Homeownership rates changed very little in the third quarter, and remain near lows not seen since 1965.

The homeownership rate decreased slightly from last year’s 63.7% to 63.5% in the third quarter, according to the latest report from the U.S. Census Bureau. This is up just 0.4 percentage points from last quarter.

Click to Enlarge

homeownership

(Source: U.S. Census Bureau)

National vacancy rates for rental housing decreased to 6.8%, down 0.5 percentage points from last year and the same as the second quarter this year. The homeowner vacancy rate remained unchanged from last quarter and last year at 1.8% in the third quarter.

“Given other evidence from the release, my views swing more with the optimists than the pessimists,” Trulia Chief Economist Ralph McLaughlin said. “Household formation surpassed 1.1 million, climbing from 944,000 last quarter. About 560,000 – or nearly half – of these households were owners, up from a loss of 22,000 last quarter.”

“I think this is good news in light of the fact that millennials now make up the largest pool of potential new households,” McLaughlin said. “Though many are still living with their parents, they eventually will move out.”

“First, they will rent, and as they settle down, and then they will buy,” he said. “While we can’t know for sure they will own at rates of older generations, our survey work at Trulia shows 80% of Millennials want to own a home – the highest share of any cohort and the highest in the seven years we’ve run the survey.”

A chart from First American shows Millennials have a higher percentage of people with a college degree than any other generation. Historically speaking, homeownership rates are much higher among those with college degrees.

Most Popular Articles

HomeStreet Bank fined for kickbacks to real estate agents, homebuilders

The FDIC announced Wednesday that it reached a settlement with HomeStreet Bank after an investigation found that HomeStreet had paid kickbacks to real estate agents and homebuilders in exchange for their mortgage business.

Nov 06, 2019 By

Latest Articles

Offerpad will let buyers customize their homes before they move in

Arizona-based iBuyer Offerpad recently announced its latest feature, one that allows homebuyers to customize their homes before moving in. According to company, consumers, upon selecting an available listing through the company’s app or website, will be able to select and visualize customization options.

Nov 11, 2019 By