Home ownership at 20 year low

According to the Commerce Department, home ownership slipped to 63.9%. The peak was 69.4% in 2004. On the flip side, household formation grew to 1.7MM units from 356,000 during the same 4th quarter period of 2013. This growth was fueled by renters but also means good news for home builders. The vacancy rate stands at 7%, the lowest level since 1993.

Comments

John's picture

I just saw an article (http://www.contracostatimes.com/real-estate-news/ci_27542574/san-francis...) which says there have been a number of tenants in SF who had to get rid of their pets due to new demands being made by landlords. Luckily, the Chicago area has plenty of supply and most things, including pets, can be negotiable. Of course, excluding the HOA bylaws.

John's picture

According to CNBC, over 10% of mortgages are still underwater. This represents almost 5.5MM households. This has caused a rise in rental properties but demand does not seem to slow down. On top of that, 10MM have less than 20% equity, meaning they may lose money to sell today or they may not qualify for a new loan. The article: http://www.cnbc.com/id/102512102