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
Bridgehampton, NY (Google Maps)
Divorce lawyer sells Bridgehampton home for $45M
Divorce lawyer sells Bridgehampton home for $45M
A photo illustration of One John Street (left) and 79 Second Place (right) in Brooklyn (Douglas Elliman, Front Inc., Getty Images)
Brooklyn’s top deal last week? Just $6M
Brooklyn’s top deal last week? Just $6M
565 Broome Street, Heat Wave
Manhattan’s luxury market records slowest week since 2020
Manhattan’s luxury market records slowest week since 2020
Corcoran’s Catherine Juracich and Official’s Tal Alexander with 22 Bond Street (Getty, Alexander Brothers, BKSK Architects)
Shake-up at 22 Bond: Corcoran in, Tal Alexander out at NoHo condo
Shake-up at 22 Bond: Corcoran in, Tal Alexander out at NoHo condo
Andy Cohen and 299 West 12th Street (Getty Images, Google Maps)
Bravo boss Andy Cohen in contract for West Village penthouse
Bravo boss Andy Cohen in contract for West Village penthouse
Wyoming ranch with ties to Walt Disney hits market for $71M
Wyoming ranch with ties to Walt Disney hits market for $71M
Wyoming ranch with ties to Walt Disney hits market for $71M
Seattle Hotel Group's Bruce McCaw and property at Hunts Point, Washington (Getty, Windermere Real Estate)
Bruce McCaw’s Northwest estate hits the market at record-setting price
Bruce McCaw’s Northwest estate hits the market at record-setting price
Extell's Gary Barnett and 217 West 57th Street (Barnet by Paul Dilakian, Itrytohelp32, CC BY-SA 4.0, via Wikimedia Commons)
Barnett: Central Park Tower will fall short of $4B sellout
Barnett: Central Park Tower will fall short of $4B sellout
arrow_forward_ios

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

Loading...