US homeownership spikes a year after hitting 50-year low

Q2 saw a rate of 64 percent, according to the Census Bureau

TRD New York /
Jul.July 28, 2017 08:00 AM

The homeownership rate across the country hit 63.7 percent in the second quarter of the year, according to the Census Bureau.

The jump is a full percentage point increase from the same time period last year, the Wall Street Journal reported. In the second quarter of 2016, the homeownership rate was 62.9 percent, a 50-year low, according to the publication.

The increase implies that the downward spiral that followed the financial crisis is on the upswing. The newspaper noted that quarterly reports can be inconsistent, but found there were other factors indicating improvement. The number of new-owner households exceeded new renter ones for the second quarter in a row, for example. There are now more homeowners in the country than any time in the past eight years, Svenja Gudell, chief economist at Zillow, told the newspaper.

“The damage the [2007-09] great recession has done to the homeownership rate is likely reversing course,” Ralph McLaughlin, chief economist at home tracker Trulia, told the Journal.

It’s not good news for landlords, who are dealing with high vacancy rates. However, it is provides a boost for new construction, which is good for the economy.

Big companies banking on homeownership rates staying low are scooping up suburban single-family homes across the country. Firms like American Homes 4 Rent, Colony Starwood Homes, Progress Residential and Streetlane Homes have spent $40 billion buying 200,000 houses to rent out across the United States. [WSJ]Miriam Hall

Related Article


Aggressive iBuyer Opendoor acquires title and escrow company

Here are 5 takeaways from TRD’s deep dive into Eklund-Gomes’ national expansion

Nashville broker posts oral sex selfie alongside kitchen and pool listing pics

From left: Rory Golod, Robert Reffkin and 1328 Fulton Street (Credit: Google Maps)

Compass is growing rapidly in UWS and Brooklyn

Elevated risk: Malfunction at NYCHA is putting public housing residents at greater risk of being injured in its elevators

How do brokers get listings from the Department of Justice?

Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is coming to Texas

From left: Bess Freedman, Fredrick Peters, Shlomi Reuveni and Eric Benaim with 505 West 43rd Street (Credit: BHS, Warburg Realty, Reuveni, and Charliewestny)

The Daily Dirt: What brokers fear most