U.S. Homeownership Rate Falls to Lowest Since Early 1995 [View all]
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
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