Home Ownership Rate Drops (Again)

The rate retreated to 2000 levels in the first quarter of 2009.


From Forward Capital:


From Forward Capital:

At 67.5 percent, the homeownership rate (seasonally adjusted) now stands at its lowest point since the fourth quarter of 2000. Recall that between 1995 and 2005, the homeownership rate embarked on a sustained advance... As we have discussed many times, the first half of this decade-long advance was largely fueled by a prolonged and broad-based economic expansion that ended with the recession of 2001 (with government policies and increased access to mortgage credit also helping). The subsequent increases in the homeownership rate were largely fueled by an abundance of cheap and readily available credit along with increasingly lax mortgage lending standards. With the homeownership rate now back down to 67.5 percent, the second half of the decade-long rise in the homeownership rate has now, in essence, been erased. With the homeownership rate almost surely to continue drifting lower, however, some of the gains seen between 1995 and 2001 will also be given back.