During the second quarter of twenty sixteen, the U.S. homeownership rate declined to its lowest level in more than fifty years. This is a reflection of many things, including the lingering impacts of the foreclosure crisis, financial hurdles to purchasing a home, and shifting demographics.
As indicated by writer Jeffrey Sparshott, the homeownership rate, which reflects the proportion of households that are owner occupied, fell to sixty two point nine percent during the second quarter, down about half a percentage point from the same time a year ago.
That was the lowest figure since nineteen sixty five. Still, there is some positive news in the underlying data. Household formation is accelerating in America, suggesting that more people have become sufficiently optimistic to strike out on the own.
However, many of these new households are renting rather than buying. Data indicate that the number of renter occupied housing units surged by nearly a million over a recent twelve month period. Over the next few years, expect that more of these renters will become owners of homes as more couples have children and move toward the next stage of their lives.
