New Households Choose Renting Over Home Ownership
Digested from The Homeownership Rate Is Near a 30-Year Low. Could It Be Hitting Bottom?
The Wall St. Journal (10/27/15) Kusisto, Laura, and Hudson, Kris
The homeownership rate may have hit its bottom. The number is at its lowest level in decades, but it ticked up slightly this past quarter, from 63.4 percent to 63.7 percent. And price increases indicate that the market is growing stronger. Also, experts expect the economy to grow, albeit modestly.
Rental vacancies also have been increasing as the market strengthens. But wavering job growth and people's inability to afford increasingly expensive homes may make the more skeptical or apprehensive among them more likely to rent.
New households continue to enter the market as well, with far more preferring the rental market: There were only 123,000 new homeowner households in the quarter, year over year, compared to 1.3 million renter households over the same time.