Homewonership Rate Rallies
Homeownership Rate Rallies
Is the tide turning? The homeownership rate rallied slightly at 63.5 percent in the third quarter, higher than the 62.9 percent rate in the second quarter—the lowest point in more than 50 years, according to the U.S. Census Bureau’s Quarterly Housing Vacancies and Homeownership report. The third quarter homeownership rate did not differ considerably from last year’s third quarter, however, at 63.7 percent.
On inventory, roughly 87 percent of housing was occupied in the third quarter, with 55.5 percent owner-occupied and 31.9 renter-occupied.
The Midwest saw the highest homeownership rates in the third quarter at 68.6 percent; the West saw the lowest, at 58.2 percent.
Non-Hispanic white homeowners held the highest homeownership rate in the third quarter, as well, at 71.9 percent. Asian or Native Hawaiian and Pacific Islander homeowners held the second-highest rate at 55.6 percent. Hispanic homeowners held the third-highest, at 47.0 percent. Black homeowners held the lowest rate, at 41.3 percent—though both the Hispanic and Black rates were higher than those of last year’s third quarter.Homeownership rates in the third quarter were also highest among homeowners aged 65 and older, at 79.0 percent, and lowest for homeowners aged 35 and younger, at 35.2 percent.
The homeowner housing vacancy rate came in at 1.8 percent in the third quarter, while the renter vacancy rate reported 6.8 percent. Homeowner vacancy rates were highest outside metro areas at 2.5 percent, followed by inside principal cities at 1.9 percent and in suburban areas at 1.5 percent. Renter vacancy rates mirrored those of homeowners: highest outside metro areas at 9.6 percent followed by inside principal cities at 6.9 percent and in suburban areas at 6.0 percent.
“Optimists and pessimists alike have fodder for their cause,” wrote Trulia Chief Economist Ralph McLaughlin. “On the optimist’s side, household formation—whether it’s from new renter or new owner households—is good for both the housing market and the general economy, as some renters eventually become owners and new households drive demand for Home-related goods and services. On the pessimist’s side, there are headwinds for those that want to own a home, but can’t: prices and rents have outpaced incomes, credit standards are higher, and a high share of young households are still living with their parents.The median list price of vacant for-sale housing in the third quarter was $157,500.
“Given other evidence from the [Census] release, my views swing more with the optimists than the pessimists.”
Tom Stachler is a licensed Broker and Builder marketing condo and home in the Ann Arbor Michigan are including other surrounding areas such as Dexter, Saline, Chelsea, Milan Ypsilanti and Pinckney real estate markets. Note the Search Properties link above to view a complete Inventory of homes and condos for sale. Also click on the resources tab above for other helpful information Links, contractor discounts and sources. Have questions want a price on your home or searching for homes, hit the contact me link or call us, we would love to hear from you.
Tom Stachler is a licensed broker and builder in Ann Arbor Area selling homes in Saline, Dexter, Milan and Ypsilanti home and condo markets. Please check out the handy navigation tabs and other helpful resource Links providing pricing on your home or active real estate Inventory.