New York State has the lowest homeownership rate in the nation, according to census data, MSNBC reported. The homeownership rate in the Empire State is 53.3 percent, compared with the highest rate of 73.4 percent in West Virginia. The median home value in New York is $306,000, the sixth highest in the country. In contrast to the rest of the country, in New York City, for example, an unusually large proportion of households, 69 percent, are renters. The New York trend fits into a larger national picture where homeownership is high in thinly populated states with low home prices, and is low in states with expensive homes and large cities. [more]

U.S. homeownership rates are below 60 percent when delinquent borrowers are discounted, an indication of the country’s move toward a “rentership society,” according to a Morgan Stanley report released yesterday, cited by Bloomberg News.

The national homeownership percentage was 66.4 in March but would be only 59.7 percent without 7.5 million delinquent owners who will likely soon be forced into renting. The lowest rate on record was 62.9 percent in 1965, the first year the census began, Bloomberg said. The highest rate on record was 69.2 percent in 2004.

Mortgage delinquencies, foreclosures and tighter credit are stymieing property buying, Morgan Stanley analyst Oliver Chang said. [more]

Homeownership rates (source: MBA)

While some bemoan falling homeownership rates as another symptom of the flailing economy, research released today by the Mortgage Bankers Association shows the fall is merely a correction back to historical norms. “The question of why homeownership rates are falling now is really a question of why they were so high during the middle of the last decade,” said Stuart Gabriel, a UCLA business school professor and one of two head researchers on the project. For three decades, from the late-1960s to the mid-1990s, homeownership rates remained stable between 64 and 65 percent. But in 2004 it reached an all-time high of 69.2 percent, thanks to a combination of loosening mortgage credit standards and an inclination among Americans less than 35 years old to take on more risk compared to their forefathers. — Adam Fusfeld
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Ninety-five percent of homeowners and 72 percent of renters agree that owning a home is a smart decision over the long term, according to the American Attitudes About Homeownership survey by the National Association of Realtors. In addition, 93 percent of homeowners are happy with the decision to own a home and would buy again. “Homeowners and renters agree that homeownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy,” said Ron Phipps, president of the NAR. TRD [more]

National vacancy rates in the third quarter of this year were 10.3 percent for rental housing, a .8 percent year-over-year decrease from 2009, according to data released today by the U.S. Census Bureau. The vacancy rate was 2.5 percent for homeowner housing, a .1 percent year-over-year decrease from 2009, and a .3 percent decrease from last quarter. In the third quarter of 2010, approximately 85.6 percent of housing units in the United States were occupied and 14.4 percent were vacant. Owner-occupied housing made up 57.3 percent of total housing units, while renter-occupied units accounted for 28.3 percent of the inventory. TRD

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The mortgage crisis and subsequent housing market turmoil have led some to ask whether homeownership should be synonymous with the “American Dream.” In this CNBC video, Congressman Paul Kanjorski weighs in on whether owning a home should be the ideal for many families. “It doesn’t fit all people; not all people are capable of homeownership at this time,” Kanjorski said. “But in reality, we’ve always found over history [that] homeownership is probably the best equity builder that our system has had… we want to make sure we don’t throw the baby out with the bath water.”

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The U.S. homeownership rate slipped to 67.1 percent last quarter, its lowest level since 2000, according a report from the U.S. Census Bureau (see the full report after the jump). Meanwhile, vacancy rates for rentals rose 0.5 percent on a year-over-year basis, and dropped 0.1 percent from the end of 2009. For homeowners, the 2.6 percent vacancy rate during the first quarter was 0.1 lower than both the first and fourth quarters of 2009. Roughly 14.5 percent of all housing units were vacant last quarter. Renter-occupied units comprised 28.1 percent of the country’s total housing stock. [more]

While some potential homebuyers are approaching the market more cautiously, most still view homeownership as the American Dream, according to a public sentiment survey by Fannie Mae. The housing organization found that while around 23 percent of renters plan to delay their plans to buy a home, 70 percent of the survey respondents, who were polled between December 2009 and January 2010, still consider a home to be “one of the safest investments available.” Around 65 percent of respondents also said that they would rather own a home than rent one. Mike Williams, president and CEO of Fannie Mae, said that the data indicates positive public sentiment toward the institution of homeownership. “Despite the recent downturn in the housing sector, Americans continue to value homeownership and think about their homes in ways that go much deeper than the financial investment,” Williams said. TRD

From the South Florida Web site: Simply put, values of real estate, stocks, companies, individuals, and
most everything were artificially increased by 100 percent or more the
first half of this decade primarily due to increases in real estate
values from speculation fueled by leverage and debt. The painful result
of deleveraging is well underway, as the process of devaluation and
riddance of debt continues. Seventy percent of the U.S. gross domestic
product is generated by American consumers. I’ve recently heard some
pundits say that a “consumer-less recovery” was underway. There is no
such thing. Jack McCabe is CEO of McCabe Research & Consulting in Deerfield Beach, Fla. He is an independent real estate analyst and consultant to major developers, lenders, and investors.
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Federal officials at the Treasury Department are considering a plan
that would allow borrowers who are behind on mortgage payments to avoid
eviction by renting their homes instead. Under the plan proposed by
economist Dean Baker of the Center for Economic Policy Research, a
bankruptcy judge would help determine a fair rent for the property.
Banks would be able to sell the occupied homes, but the lease would
remain in effect even if the ownership changed. Officials are still
figuring out how to replace a loan with a rental lease without
disrupting the overall mortgage market. Two possible methods that are
being considered by government officials are paying cash to
mortgage-service companies to take part in the new program or selling
homes to a third party that would write rental agreements. [more]