Dive Brief:
- The rate of homeownership in the U.S. rose 0.3% between the second quarter and third quarter, reaching 63.7%, the Census Bureau reported Tuesday.
- On the plus side, the rate didn't dip — as many expected — to what would have been the lowest level since the government began tracking homeownership in 1965. The rate was, however, still 0.7% lower than during the third quarter of 2014.
- In July, the Census Bureau reported homeownership in the second quarter of 2015 fell to 63.4% — its lowest level since 1967.
Dive Insight:
After the July report, many housing industry experts predicted the rate would continue to fall and soon reach that record-low percentage. Recent reports coincide with those predictions, as sky-high rents and student debt concerns combined with growing home prices have kept potential buyers away from diving into ownership. Last week's existing home sales report also showed that first-time buyer share fell to 29% in September after reaching its highest percentage of 2015 the previous month.
But Tuesday's announcement was a positive sign that some renters decided to take the plunge into ownership during the last quarter — which means good news for single-family builders.
The average U.S. homeownership over 50 years stands at 65.3%, according to Time. It reached an all-time high pace of 69.2% in 2004 — before it fell again during the economic recession.
The slight rise in homeownership could have been one of the contributing factors of a surge in builder confidence this month, as the National Association of Home Builders/Wells Fargo housing market index grew by 3 points to 64, marking its highest level since October of 2005