Homeownership Rates at 1998 Levels

Homeownership rates are at 1998 levels according to a report released today by the U.S. Census. The homeownership rate of 65.9 percent was 1.0 percentage points (+/-0.4%) lower than the second quarter 2010 rate (66.9 percent) and 0.5 percentage points (+/-0.4%) lower than the rate last quarter (66.4 percent) The homeownership rate reached a record high of 69.2 percent in the second and fourth quarters of 2004. 

Also reported were national vacancy rates in the second quarter 2011 of 9.2 percent for rental housing and 2.5 percent for homeowner housing. The rental vacancy rate of 9.2 percent was 1.4 percentage points lower than the rate recorded in the second quarter 2010 (+/-0.5 percentage points) and 0.5 percentage points lower than last quarter (+/-0.4).

Approximately 85.7 percent of the housing units in the United States in the second quarter 2011 were occupied and 14.3 percent were vacant. Owner-occupied housing units made up 56.5 percent of total housing units, while renter-occupied units made up 29.2 percent of the inventory in the second quarter 2011.

See the Census Report

Residential Construction Numbers Up

The Commerce Department’s U.S. Census Bureau today released data on new residential construction for June 2011. Housing starts surged 14.6 percent in June, easily surpassing private-sector expectations of a 2.7-percent increase. Permits for new housing units also beat expectations, increasing 2.5 percent in June following an 8.2-percent jump in May. Private-sector analysts had expected a 2.3-percent drop in permits from May to June.

“While today’s new construction report is encouraging, the housing market remains fragile,” U.S. Commerce Secretary Gary Locke says. “If America fails to meet its obligations, it would lead to a sharp decline in household wealth and higher mortgage rates, which would profoundly damage the housing market’s recovery. Now is the time for members of both parties to make tough choices and take a balanced approach to solve this problem, so we can focus on getting more Americans back to work.”