US homeownership spikes a year after hitting 50-year low

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

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 Articles

arrow_forward_ios
John Catsimatidis and 670 Pacific Street (Getty, StreetEasy)
John Catsimatidis clocks win for landlords in 421a suit; tenants vow to appeal
John Catsimatidis clocks win for landlords in 421a suit; tenants vow to appeal
Robert Herjavec and One57 (Getty, Beyond My Ken/Wikimedia)
Robert Herjavec buys One57 condo at $13M discount
Robert Herjavec buys One57 condo at $13M discount
Realtors no longer heart “love letters” to sellers
Realtors no longer ♡ “love letters” to sellers
Realtors no longer ♡ “love letters” to sellers
1 Swan Landing
5 Gatsby-esque homes fit for the Roaring 2020s
5 Gatsby-esque homes fit for the Roaring 2020s
Home sales rise in June, snapping four-month downward streak
Home sales rise in June, snapping four-month downward streak
Home sales rise in June, snapping four-month downward streak
Housing investors took advantage of a hot market, collectively purchasing the group’s most homes in a quarter since 2000. (iStock)
Housing investors went on spending spree in second quarter
Housing investors went on spending spree in second quarter
Sundae co-founders Josh Stech and Andrew Swain (Sundae via LinkedIn)
Distressed-property startup Sundae raises $80M in Series C round
Distressed-property startup Sundae raises $80M in Series C round
M&T Bank reports late-stage delinquent loans more than doubled in past year
M&T Bank reports late-stage delinquent loans more than doubled in past year
M&T Bank reports late-stage delinquent loans more than doubled in past year
arrow_forward_ios

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

Loading...