U.S. Homeownership Hits Half-Century Low
July 29, 2016 — High prices and limited supply are keeping renters from becoming buyers.
After peaking in 2004, the rate of U.S. homeownership is now the lowest since 1965, Bloomberg reports. Soaring nationwide real estate prices, along with competition for a tight supply of listings, have fuelled the decline.
The share of Americans who own their homes was 62.9 percent in the second quarter of this year, according to U.S. Census Bureau report released Thursday – down sharply from the 2004 peak of 69.2 percent. Meanwhile, home prices rose 5.2 percent in May from a year earlier, according to the S&P CoreLogic Case-Shiller index in 20 cities released this week.
“One of the biggest hurdles now is affordability,” said Mark Vitner, a senior economist at Wells Fargo Securities. “Home prices are rising so much faster than incomes, so it’s hard for buyers to save for a down payment.”