Home Ownership Rate: YoY First Positive Reading Since 2006
Over the last decade, the general trend has been consistent: The rate of home ownership continues to decline. The Census Bureau has now released its latest quarterly report with data through Q1 2017. The seasonally adjusted rate for Q1 is 63.6 percent, down fractionally from 63.7 in Q4 2016. The nonseasonally adjusted Q1 number is also 63.6 percent, fractionally above the Q2 number and its highest since Q4 2015.
The Census Bureau has been tracking the nonseasonally adjusted data since 1965. Their seasonally adjusted version only goes back to 1980. Here is a snapshot of the nonseasonally adjusted series with a 4-quarter moving average to highlight the trend.
The consensus view is that trend away from home ownership is a result of rising residential real estate prices in general and limited supply of entry level priced homes that would attract first-time buyers.
Here is the YoY version of the chart going back to 1965.
Homeownership Rates in Other Countries
The snapshot below gives us a crude comparison of the US homeownership rate compared to seventeen other countries. Our data source is a subset of the nearly four dozen countries in this Wikipedia entry on home ownership. We included the outliers at the top and bottom, Romania at 96.4% and Switzerland at 44.0%, most as of 2015 and 2014, respectively.
The underlying factors in the chart above are quite complex: Residential real estate affordability, financing options, household income distributions, demographics and cultural values, to mention some of the more obvious.
For additional perspectives on residential real estate, here is the complete list of our monthly updates: