The U.S. Commerce Department reported on July 26 that the U.S. homeownership rate rose to 64.3 percent in the second quarter, a tenth of a percentage-point increase from the first quarter.
The share of homes in which at least one occupant is the owner has jumped 0.6 percentage points over the past year. However, the rate is far less than the peak of 69.2 percent in late 2004 and a full percentage point under the 50-year average.
“Homeownership has bottomed out but is likely to go more or less sideways for the foreseeable future,” says Moody’s Analytics economist Mark Zandi. “Easing credit standards and a strong job market will support homeownership, but higher mortgage rates and the change in tax law weigh on it.”
The report found that the homeownership rate among those under age 35 rose 1.2 percentage points on a year-over-year basis to 36.5 percent in the second quarter.
Source: Wall Street Journal (07/27/18) P. A3; Mitchell, Josh
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