Flat homeownership rate is not a bad thing says CoreLogic

by Steve Randall26 Jul 2019

The homeownership rate in the US was little changed in the second quarter of 2019 according to the US Census Bureau.

Its quarterly report shows that the homeownership rate was at 64.1% compared to 64.2% in the first quarter and 64.1% in Q2 2018.

Meanwhile the homeownership vacancy rate was 1.3% compared to 1.5% a year earlier and 1.4% in Q1 2019. The median asking sales price for vacant for sale units was $207,700.

For rental housing, the vacancy rate was 6.8%, down from 7% in Q1 2019 and virtually unchanged from Q2 2018. The rate was lower in the suburbs (6.2%) and higher out of the metro areas (8.2%).

When asked what the figures mean for the US housing market, Dr. Ralph B. McLaughlin, deputy chief economist and executive of research and insights for CoreLogic said: “The growth in the homeownership rate has flattened because renters are growing at similar rates as owners. This dual-sided growth in household formation is a surely welcomed trend by industry players in both the owner- and renter-occupied segments of the U.S. housing market. It’s a core sign of a healthy market, and one that doesn’t show any signs of relenting in the near future.”

Approximately 87.8% of the housing units in the United States in the second quarter 2019 were occupied and 12.2% were vacant.

Owner-occupied housing units made up 56.3% of total housing units, while renter-occupied units made up 31.5% of the inventory in the second quarter 2019.

 


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