The U. S. homeownership rate fell to the lowest level in more than 50 years in the second quarter of 2016, a reflection of the lingering effects of the housing bust, financial hurdles to buying and shifting demographics across the country.
But the bigger picture also suggests more Americans are gaining the confidence to strike out on their own, albeit as renters rather than buyers.
The homeownership rate, the proportion of households that are owner-occupied, fell to 62.9%, half a percentage point lower than the second quarter of 2015 and 0.6 percentage point lower than the first quarter 2016, the Census Bureau said on Thursday. That was the lowest figure since 1965.
There are many ways to interpret the numbers. Part of the story is the catastrophic housing market collapse, which was especially severe for Generation X – those born from 1965 to 1984.
This post was published at David Stockmans Contra Corner on July 29, 2016.
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