Homeownership rates rise after falling to 51-year low

Rate hit 63.5% in third quarter, up from 62.9%

New York /
Oct.October 28, 2016 11:50 AM

Homeownership rates nationwide grew in the third quarter to 63.5 percent, after hitting a 51-year low of 62.9 percent in the prior quarter, the Census Bureau said Thursday.

That could be a sign the decade-long decline in homeownership is at a turning point. In 2005, the homeownership rate hovered at 69 percent; in 2006 it began dropping steeply and has been on a downward slope ever since, with some fluctuation.

“I think the long slide, which began with the housing bust back 10 years ago, is over,” Mark Zandi, chief economist at Moody’s analytics told the Wall Street Journal.

But Joseph Lavorgna, chief U.S. economist at Deutsche Bank disagrees, “When you have something that has essentially been in decline for 10 years, one quarter isn’t enough to tell me that we are even stabilizing.”

There is reason to be skeptical. This quarter’s rate of 63.5 percent is lower than where it was a year ago, at 63.7 percent, although the difference is not statistically significant. In addition, the seasonally adjusted rates of 63.4 percent for the third quarter, and 63.1 percent for the second, are also not considered statistically significant.

Nevertheless, the Census Bureau did introduce another cause for optimism. New households were up 1.1 million in the third quarter from 944,000 in the second. About half of the new households were owners rather than renters. [WSJ]Chava Gourarie


Related Articles

arrow_forward_ios
Ribbon co-founders Shaival Shah and Wei Gan (Ribbon, iStock)
Homebuying startup Ribbon to take on Midwest, West Coast markets
Homebuying startup Ribbon to take on Midwest, West Coast markets
HomeLight Founder and CEO Drew Uher & COO Sumant Sridharan (HomeLight, Uher)
HomeLight lands $100M in Series D equity, valuing company at $1.6B
HomeLight lands $100M in Series D equity, valuing company at $1.6B
Reali CEO Tyler Baldwin (Reali)
Home buying and selling platform Reali raises $250M in Series B round
Home buying and selling platform Reali raises $250M in Series B round
Black homeownership’s Catch-22
Black homeownership’s Catch-22
Black homeownership’s Catch-22
Invitation Homes CEO Dallas Tanner and PulteGroup Ryan Marshall (Invitation Homes, LinkedIn)
Invitation Homes eyes expansion with PulteGroup partnership
Invitation Homes eyes expansion with PulteGroup partnership
Los Angeles, New York and Miami metro areas are in the top 10 of owner-occupied million dollar homes. (iStock)
These metro areas have the most — and fewest — million-dollar homes
These metro areas have the most — and fewest — million-dollar homes
(iStock)
Hot, hot, hot: Resi market sets new price records in March
Hot, hot, hot: Resi market sets new price records in March
A recent study that found 1 in 10 Black homeowners returned to renting between 1984 and 2017 (iStock)
Black homeowners twice as likely to lose homes and return to renting: Report
Black homeowners twice as likely to lose homes and return to renting: Report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...