Homeownership Falls to Lowest Level Since 1998
The rate is down from 67.1% one year ago, and a single basis point dip from the previous quarter. But it has not been this low since the fourth quarter of 1998.
Palm Coast, FL – April 27, 2011
The homeownership rate dropped to 66.4% in the first quarter, the lowest level since 1998, according to the Census Bureau.
The rate is down from 67.1% one year ago, and a single basis point dip from the previous quarter. But it has not been this low since the fourth quarter of 1998.
Paul Dales, senior economist at Capital Economics, said the decline is "yet more evidence that Americans are now less able and less willing to buy a home." Subsequently, he expects increased demand for rental accommodation will boost returns in the residential rental market.
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Rent cheaper than ownership
Why would I want to own, when prices are still going down and they are rented cheaper than it would cost with 20% down?
People are not dumb, the only ones buying are cash investors that rent them.
Young couples are not buying as they are not having families early and want the easy move out that an appartment offers when they change jobs, or the renting of houses that offers the same.
No sign of rebound in the economy means more lost of value in houses.