U.S. Homeownership Rate Falls to Lowest Since Early 1995

[Purveyor]

Source: Bloomberg

By Prashant Gopal Oct 28, 2014 12:50 PM ET

The homeownership rate in the U.S. fell to the lowest in more than 19 years as the market shifted toward renting and tight credit blocked some potential buyers.

The share of Americans who own their homes was 64.4 percent in the third quarter, down from 64.7 percent in the previous three months, the Census Bureau said in a report today. The rate was at the lowest level since the first quarter of 1995.

Entry-level buyers have been held back by stringent mortgage standards and slow wage growth. The share of first-time buyers was 29 percent in September for the third straight month, compared with about 40 percent historically, according to the National Association of Realtors said.

“The homeownership rate hasn’t bottomed yet,” Paul Diggle, U.S. property economist for Capital Economics Ltd. in London, said in a telephone interview. “Something like 64 percent seems like a reasonable floor. But that floor is now in sight.”

Read more: http://www.bloomberg.com/news/2014-10-28/u-s-homeownership-rate-falls-to-lowest-since-early-1995.html

[BlueJazz]

1. If we, as a country don't raise the minimum wage to about 12 dollars, we'll see a further ...

...drop in home ownership. Prices for food and services are rising and when the lower populace can't spend anymore, those that are making decent money will find themselves either laid-off or accepting fewer hours.

I've had about 7-10 percent of my customers (computer tech/service) hand me checks and ask "Can you hold this until Saturday before you deposit it"

2 years ago, it was maybe 2-3 percent. Something IS not right.

PS..and I don't charge that much either...

[KurtNYC]

2. why do they call it "ownership" 30 years before you own it ?

The bank owns it, not you. You just pay taxes and upkeep and interest. Miss two payments and you'll see who owns it.