Business

Homeownership Plummets to a 15-Year Low

Homeownership Plummets to a 15 Year LowWASHINGTON (The Blaze/AP) — The American dream of homeownership is at its lowest point in 15 years, the latest evidence of a housing market still far from recovering five years after the housing crash.

New figures released Monday by the Census Bureau show the rate of U.S. homeownership fell in the first three months of this year to 65.4 percent. That’s down from 66.4 percent in the first quarter last year.

The last time the rate hit 65.4 percent was in the first quarter of 1997. The rate peaked at 69.2 percent in the fourth quarter of 2004, during the high-flying days of the housing boom.

Recent housing and economic data have been encouraging, prompting some economists to predict a pickup in housing this year. But few believe the U.S. will ever return to its mid-decade peak.

January and February made up the best winter in five years for U.S. sales of previously occupied homes, although sales fell in March. Still, a report last week tracking the number of signed contracts to buy a home rose to its highest level in nearly two years in March. That could point to improved sales over the next couple of months.

Still, a backlog of foreclosures is expected to come on the market this year, weighing on home prices.

Banks are stepping up foreclosures in about half the states after slowing sharply last year while five of the nation’s biggest mortgage lenders sorted out foreclosure-abuse claims.

Many potential homebuyers are still holding off from purchasing a home. Many buyers can’t qualify for loans, and lenders are requiring higher credit scores and larger down payments.

And some who can qualify are hesitant to buy because they worry home prices will keep falling.

On a regional basis, the Northeast, Midwest, South and West all posted lower homeownership rates in the first quarter than a year earlier. The Midwest had the highest homeownership rate at 69.5 percent, while the West had the lowest at 59.9 percent.

Americans 65 years or older accounted for the highest rate of homeownership during the quarter at 80.9 percent. That’s stayed pretty much the same going back to 2006.

Homeownership Plummets to a 15 Year LowThose under 35 represented the smallest group of homeowners, with a homeownership rate of 36.8 percent. That’s down from 37.9 percent a year ago.

The Census also sliced the latest homeownership figures by race.

Non-Hispanic, white Americans had a 73.5 percent rate of homeownership, down from 74.1 percent in the prior-year quarter. Blacks had a 43.1 percent homeownership rate, down from 44.8 a year ago.

The rate for Hispanics was 46.3 percent, down from 46.8 percent.

It’s probably not surprising that households with incomes equal to or greater than the national median family income had a higher homeownership rate (80.3 percent) than those who earned below the median (50.4 percent). But both sides of the income divide saw their homeownership rate decline by about 1 percent.

While homeownership is down, fewer homes and rental properties are empty.

The first-quarter Census figures show national vacancy rates for rental housing slipped to 8.8 percent, down from 9.7 percent a year earlier. Vacancy rates among homeowners fell to 2.2 percent from 2.6 percent.

By region, vacancy in rental housing was highest in the South at 10.8 percent, and lowest in the West at 6.3 percent. The rental vacancy rate in the Northeast increased from a year ago, while rates in the Midwest, South and West declined.

Among homeowners, the rate of vacancies was higher in the South than in the Northeast, but about the same as in the Midwest and West. Vacancy rates in the Midwest, South and West declined from a year ago. The rate in the Northeast was essentially unchanged.

All told, roughly 86.1 percent of rental housing and homeowner properties were occupied in the first quarter, while nearly 14 percent were vacant.

Comments (19)

  • Beckofile
    Posted on May 1, 2012 at 3:31pm

    Deflation of home, inflation in commodities, gold at record highs. This is going to be a wonderful election season. Cancel cable today so I don’t have to watch the fascist and mittens lie to all of us.

    Report Post » Beckofile  
    • trueamerican40
      Posted on May 1, 2012 at 5:28pm

      The age of socialism began a long time ago for America. It’s sad that it may be too late; the spilt blood of our war heroes may have been in vain.

      Report Post » trueamerican40  
  • Ghandi was a Republican
    Posted on May 1, 2012 at 3:31pm

    Can‘t be Bush’ fault…

    Report Post » Ghandi was a Republican  
  • hauschild
    Posted on May 1, 2012 at 3:18pm

    Wait till the home mortgage deduction goes by by. Nobody in their right mind would buy a home then. Yet, then watch as the bottom feeders continue to get their free cheese.

    The raping and pillaging of the middle class will grow to epic proportions soon.

    Report Post »  
  • CatB
    Posted on May 1, 2012 at 3:11pm

    MSM .. where are the stories about the homeless? You can’t find any with people losing/abandoning their homes? You found them when Bush was President where did they go now that housing is a REAL problem?

    Report Post »  
  • Skrewedretiree
    Posted on May 1, 2012 at 3:06pm

    There is another dark side to all this: In the City of Bremerton (Bremergrad) the City Soviet passed an ordinance years ago mandating housing to be multli-unit. The goal is for “urban density” and maximization of property occupancy. So, nearly all construction is now duplexes or condos or a combination. Older, single family dwellings are grandfathered, BUT- if a house burns and needs to be rebuilt, it must be rebuilt as multi-unit housing. Just two blocks from my house, a home burned. It was rebuilt according to the new ordinance, with an added second story as a separate apartment. The insurance money covered rebuilding of the home the way it was, so naturally the owner had to sell out and it is now 2 rentals. If my home burned, it would go the same way.

    Democrats (the only party in power here since I lived here- 40 years- and even before then) do NOT want the average Joe to own his own home. There is a movement toward Government controlled housing. Here, they are using developers, conglomerates, etc. to act as middlemen, but in the end all the dweller has to show for his money is not a home, or a home with a mortgage, but a handful of rent receipts and has to live under the whims of the Landlord.
    Those of us who own our homes see our property continually devalued, the land stays high value, and the taxes keep going up.

    Welcome to the Obamanation.

    Remember In November

    Report Post » Skrewedretiree  
  • progressiveslayer
    Posted on May 1, 2012 at 2:53pm

    The government fiends of freddie & fannie control most of the mortgages in this country,that’s the problem,anytime government is involved it will become fubar.

    Report Post » progressiveslayer  
    • Gonzo
      Posted on May 1, 2012 at 3:41pm

      The government owns everything and “fairly” distributes it in a Marxist society. No need for personal property.

      Report Post » Gonzo  
  • Coded-Dude
    Posted on May 1, 2012 at 2:48pm

    It has certainly dropped, but I am not sure I’d call 4% plummeting.

    Report Post » Coded-Dude  
  • barber2
    Posted on May 1, 2012 at 2:37pm

    No problem for the Obama Administration and their comrades: they will just redistribute those homes to the ” needy.” Why ? Because everyone who votes for Big Brother Democrat is ENTITLED to a home…and the rich people are ENTITLED to GIVE their stuff to Big Brother who will them redistribute the homes to the needy.

    Report Post »  
  • AJAYW
    Posted on May 1, 2012 at 2:36pm

    Bush’s fault

    Report Post »  
  • barber2
    Posted on May 1, 2012 at 2:32pm

    Must be George Bush’s fault. Can’t be Mr. Cool Killer of Osama. No way he is responsible for a bad economy. No way is Mr. Cool ever responsible for anything bad. No Mr. Cool only does the good stuff. George Bush and the evil, mean, rich, guys : bankers, CEOs, capitalists, Republicans, white male southerners, white females, white Hispanics….you know – that bad crowd – are responsible for doing all of the bad stuff.

    Report Post »  
    • Gonzo
      Posted on May 1, 2012 at 2:36pm

      He might smoke Kools, but thats as close to cool as he gets.

      Report Post » Gonzo  
  • HKS
    Posted on May 1, 2012 at 2:31pm

    This has become to much liability, with the upkeep and maintenance and the tax load (turned into a tit for the tax man) depreciation and general pain in the butt of real estate, it’s not worth it.Give me a tent or a motel room, no worries.

    Report Post » HKS  
  • 13th Imam
    Posted on May 1, 2012 at 2:31pm

    Another feather in the DEMOCRATS, and J Crooks‘ Independent Party’s cap.

    Report Post » 13th Imam  
  • Gonzo
    Posted on May 1, 2012 at 2:30pm

    4 more years of Obama and we’ll all be living in our electric cars.

    Report Post » Gonzo  
    • lukerw
      Posted on May 1, 2012 at 2:41pm

      So… you have gone to the Acceptance Phase?

      Report Post » lukerw  
    • Gonzo
      Posted on May 1, 2012 at 2:51pm

      Negative. That was a warning not acceptance.

      Report Post » Gonzo  

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