Renting world: Homeownership rates continue to fall
What would you guess if someone asked you the homeownership rate among younger households — those 35 and younger?
I would have probably said at least 50 percent.
In the second quarter, it was actually just under 36 percent, which was well off the peak homeownership rates experienced a decade ago.
The U.S. Census Bureau released its quarterly survey on Tuesday, which said the national homeownership rate fell to a seasonally adjusted 64.8 percent in the second quarter. That was the lowest level in 19 years.
The peak rate since 1995 was 69.4 percent in the second quarter of 2004.
The rate among those under age 35 was 43.6 percent for that quarter.
What about those 35 to 44? The Census said 60.2 percent in the second quarter, which was nearly 10 percent off the peak rate in the first quarter of 2005.
In the Northeast, the homeownership rate in the second quarter was 62.1 percent, down from 62.4 percent in the first quarter.
Meanwhile, national vacancy rates for rental housing declined to 7.5 percent, the lowest rate since 1997, according to the Census.
Given tighter lending and increasing levels of college debt, I’d say it’s a good time to be in the rental construction business. What do you think?