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U.S. Homeownership Rises But Remains Historically Low
U.S. homeownership was 64.8% not seasonally adjusted and 64.7% seasonally adjusted in the third quarter, says CBRE. Both rates rose 0.4 percentage points from Q2 and year-over-year.
The homeownership rate has been gradually rising for three years following a decade-long decline. Q3 marked the largest quarterly increase since Q3 2016, although the homeownership rate is still low on a historical basis. Meanwhile, the apartment vacancy rate nationally reached its lowest point since 2000 in Q3, dipping to 3.6%.
Citing both tailwinds that include low mortgage rates and tailwinds including the mismatch between demand and available product, CBRE Research says the homeownership trend will continue the slow upward course it has been on for three years. However, rates will level off far below the 2004 peak of nearly 70%.
Los Angeles had the lowest Q3 homeownership rate at 48%, CBRE says. Charlotte had the highest at 72%.
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- ◦Economy
