Photo: Robert Clark
The homeownership rate in the US hit an all-time low in the second quarter of 2016, according to data from the US Census Bureau.
Following modest gains, it remained mostly steady in the second quarter of this year.
This could be an indicator that the homeownership rate has bottomed out, says the National Association of Home Builders (NAHB), a trade association.
The US homeownership rate read 63.7 percent in Q2 this year, nearly unchanged from the previous quarter’s reading of 63.6 percent. It is currently 1.3 percent higher than a year ago, when it hit an all-time low, reading 62.9 percent.
The second-quarter reading also followed the previous quarter’s first annual gains since the Great Recession.
Homeownership increased across all age groups in the second quarter compared to last year.
Millennials recorded the largest gains in homeownership, increasing by 1.2 percent. Millennials were followed by households aged 55 to 64, whose rate of ownership inched upwards by 0.7 percent.
“This suggests that households, especially younger and middle-age homebuyers, are gradually returning to the housing market after the Great Recession,” says NAHB.
The national homeowner vacancy rate remained low in the second quarter, reading 1.5 percent non-seasonally adjusted. This was slightly below the 1.7 percent recorded the previous quarter.
Meantime, the national rental vacancy rate jumped to 7.3 percent, up from 6.7 the same time last year.
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