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Homeownership Rate
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. |
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 |
| MOST RECENT STATISTIC: |
66.9% |
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|
| % CHANGE: |
(0.2%) |
| GRADE: |
A+ |
| PERIOD COVERED: |
2Q2010 |
| Date Released: |
07/27/10 |
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|
|
| Next Release: |
11/02/10 |
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|
|
2Q2010 |
1Q2010 |
4Q2009 |
2Q2009 |
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|
| United States |
|
|
|
|
|
| Percent |
66.9% |
67.1% |
67.2% |
67.4% |
|
| South Region |
| Percent |
69.1% |
69.2% |
69.1% |
70.0% |
|
| West Region |
|
|
|
|
|
| Percent |
61.4% |
61.9% |
62.3% |
62.5% |
|
| Midwest Region |
|
|
|
|
|
| Percent |
70.8% |
70.9% |
71.3% |
70.5% |
|
| Northeast Region |
|
|
|
|
|
| Percent |
64.2% |
64.4% |
63.9% |
64.3% |
|
|
|
| Source:
U.S. Census Bureau |
Analysis for the Housing Market
By:Ken Lee
In the second quarter 2010, the national homeownership rate decreased slightly from the previous quarter to 66.9 percent. This is the lowest the homeownership rate has been since the first quarter of 1999. The homeownership rate was not statistically different than it was from the previous quarter when it stood at 67.1% although it is noticeably lower than it was this time last year when it stood at 67.4%.
Two out of the four regions posted annual increases in its homeownership rate although all four regions experienced a decline from the first quarter. The Northeast region saw its homeownership rate decline to 64.2% from 64.4% in the previous quarter and 64.3% in the second quarter of last year. The Midwest region had the highest homeownership rate across the country at 70.8% which was lower than the 70.9% in the first quarter but higher than the 70.5% recorded during the second quarter of 2009. The West region recorded the lowest homeownership rate in the country, falling to 61.4% from 61.9% in the previous quarter and 62.5% in the second quarter of last year. The South saw its homeownership rate decline slightly to 69.1% from 69.2% in the first quarter but was lower than it was this time last year when it was 70.0%. High levels of unemployment and an unsteady economy caused homeownership rates to ease slightly last quarter.
In the first-time buyer age group of under 35-years-old, the homeownership rate increased slightly to 39.0 percent in the second quarter from 38.9% at the end of the first quarter. Homeownership among 35-to-44 year-old group increased to 65.6% from 65.3% last quarter. In the 45-54 age group, homeownership decline to 73.6% from 74.8% in the previous quarter while homeownership in the 55-64 age group declined to 78.7% from 79.1% in the first quarter. The over-65 year old category saw its homeownership rate decrease from the previous quarter to 80.4% compared to 80.6% in the first quarter.
Definitions and Importance for the Housing Market
By:Eric Alanis
The Housing Vacancy Survey reported by The U.S Census Bureau provides key information on homeownership rates. This survey is used primarily by public and private sector organizations to evaluate the need for new housing programs and initiatives. The U.S. Census Bureau presents data on homeownership rates based on a computerized survey with a vast sample size. Homeownership rates along with rental and homeowner vacancy rates are available for the U.S., regions, states, and for the 60 largest metro areas. The term homeownership rate is derived from the proportion of households that are owners. The homeownership rate is computed by dividing the number of households that are owners by the total number of households.
Homeownership is a valuable statistic to track, particularly in relationship to housing affordability. When homeownership significantly exceeds affordability, it is an indicator that many homeowners can’t afford to buy the home they currently own at current market prices (and 20% down payments). This is a warning signal that the market may not have the ability for significantly more appreciation. A high homeownership rate in comparison to affordability can also be a signal that there are a significant number of households who have not moved for many years. This could present opportunities for builders if they determine that very little new, innovative product has been built, which could be one reason for the lack of mobility.
For more information on homeownership rates go to:
http://www.census.gov/hhes/www/hvs.html
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