August 1, 2017
The sharp downward spiral of homeownership may have ended. The ownership rate climbed in 2Q 2017 to 63.7%, an increase of nearly a full percentage rate from a year ago when it reached a 50-year low, according to numbers released by the Census Bureau. Economists believe the ill effects of the housing crash stemming from the great recession may be reversing course.
The sustained improvement is credited to an increase in new-owner households and a drop in renter ones. And the trend is viewed as a positive for the housing market and the U.S. economy overall, since new-home construction provides a big boost.
The trend may signal a shift for the multifamily sector too, which is seeing new supply delivered to the market, and a national vacancy rate that is climbing. Reis Inc. reports it climbed to 4.4% for the quarter, up from 4.2% a year earlier.
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