Real Estate Q&A: Homeownership rates

Question: Before the housing crash and all the foreclosures, wasn’t the government trying to increase the rate of homeownership in America? What’s happened to the rate of homeownership since things took a downturn in 2006?

Answer: Yes, the rate of homeownership topped off in 2005 at 69% of American households, with the remainder renting — aside from some small part in institutional housing, such as jails.

Homeownership had been flat from 1985 to 1995 at about 64%. Then, from 1995 to 2005, it shot up to 69%. Since 2005, the rate of homeownership has fallen again. The Census Bureau recently reported that it sank to 66.9% in the second quarter of 2010.

Administrations for Presidents Clinton and George W. Bush made a point of increasing homeownership. Much has been written about the government pressure put on Fannie Mae and Freddie Mac to put more Americans in their own homes during this period.

Charles Carter specializes in real estate analysis after years of experience as a professor, real estate lawyer and appraiser. He is a consultant at Haint Blue Realty in Mount Pleasant, S.C. Readers may send questions to cccarter2010@yahoo.com. Please include full name and hometown.