Homeownership rate falls in U.S., up a bit in Southern California
The nation’s homeownership rate ticked down again in the third quarter, though it increased a bit in Southern California.
The Census Bureau reported Tuesday that 64.4% of U.S. households owned their homes in the third quarter, down from 64.7% in the prior three months. That’s the lowest rate since 1995, and down from a peak of 69.2% in 2004 before millions of families lost their homes to foreclosures during the Great Recession.
In metropolitan Los Angeles, which has long been among the most renter-heavy regions in the country, the home ownership rate ticked up two-tenths of a point to 49.3%. In the Inland Empire, it climbed to 60.2%, its highest level in three years but still well below pre-crash peaks.
While the mortgage meltdown has eased considerably, homeownership has continued to fall in much of the country as lending restrictions, an uncertain job market and, more recently, higher home prices keep would-be buyers on the sidelines.
Meanwhile, 20-somethings are moving out of their parents’ homes and into the rental market, which is sparking a surge in apartment construction.
In raw numbers, the number of owner-occupied homes in the U.S. fell from 74.9 million in the third quarter of 2013 to 74.2 million in the same period this year. Rental households grew, from 39.9 million to 41.1 million.
Homeownership has fallen fastest among younger people. Just 36% of households under age 35 own their home, and 59.1% of households aged 35 to 44.
Keep an eye on housing and real estate in Southern California. Follow me on Twitter at @bytimlogan
