Skip to comments.CHART OF THE DAY: The US Homeownership Rate Has Fallen To A 19-Year Low
Posted on 06/02/2014 2:05:12 PM PDT by F15Eagle
The comeback of the U.S. housing market has been one of the most bullish economic stories in the world since the financial crisis. Sales, construction starts, and prices have all trended higher.
While sales are up, ownership rates are actually down as reluctant Americans are opting to rent rather than buy.
According to new Census data, the homeownership rate slipped to 64.8% in Q1 from 65.0 % a year ago and 65.2% in the previous quarter.
This is the lowest level since Q3 1995.
Read more: http://www.businessinsider.com/q1-2014-us-homeownership-rate-2014-4#ixzz33WBDmfR4
(Excerpt) Read more at businessinsider.com ...
Remember, the economy is improving! /s
Well, when you don’t have many more people working than you did 14 years ago, and those who are are making less money, it’s going to hit the ability to own your own home.
I’m thinking the standard of living has gone up in China though. And you know, at the end of the day, that’s all that matters.
Actually, this makes sense. The housing boom probably began around 1995. The government got involoved and forced banks to make loans to people who had no business taking out loans. That created the housing bubble. Now we’re down to where we were (in terms of ownership) when the bubble started. Any attempt to force more ownwership will result in another bubble. There is probably some percentage of society who will never own a home because they their employment is never stable enough. Remember, it has to be stable for three decades, not three months.
On another side of this, one of the Senators from New York bought the building I was living on while on assignment in Panama City. The super, who phone-met with him every Saturday, said he was buying complexes all over Florida every week. He owned a couple dozen by that time. Doubtless he’s hiding his money from NY taxes.
The cost of rental housing is going up as more and more investors cash in. I just bought a severely damaged double-wide on five acres of woods in an all A school district. I paid $45k, will spend $10k and rent it for $800/month. It is close enough to where everybody works in Tallahassee, but the only A and B schools in Leon county are in districts where the housing bubble values never ended. The rest of the houses in the failing sectors only rent to university students or the very poor. So, renters come from Leon county just so their kids won’t be in schools that look like the county lockup.
If you’re handy enough to do a lot of the repair and renovation yourself, and very careful in choosing your property or properties as well as your renters (posting a flyer in the nearest schools and churches works in rural and outer suburban areas), it’s possible to pull off having positive cash flow from the outset in some areas. In desirable areas with good schools, rents are going up, existing properties in good condition have stabilized and begun to appreciate again, but there are still distressed properties. Poorly maintained modulars, poorly maintained old 1 bath ranches, that sort of thing. A lot of effort and worry, but it can be made to work.
Home ownership for many is a thing of the past; I’m seeing the same trend with car ownership with young people...
The house nextdoor is abandoned since 1/6/2014.
It was rented for a year before that.
The owners had Ø signs during the elections.
They voted (ignorantly) for the 3.5% rental income tax in Ø-care.
The house was flipped by an evil couple who lied and said they were moving in to raise a family there.
Now the Ø-bots can’t get even close to what they paid.
Heard it’s in foreclosure now.
Property taxes floating the pensioners are certainly not going down.
I’ve got a couple of abandoned homes around; not many (any enterprising person can rent them out to hundreds of Hispanic illegals). The Dems strategy for the foreseeable future has to be hiding the consequences of the Obama reign from voters; the media did an incredible job in 2012, and I expect more of the same.
I can’t believe how far we have fallen; paychecks consumed by basic essentials, the deterioration in quality of almost anything you buy (the cheap Red Chinese garbage), what a difference a decade or two makes...I’ve bought and received as gifts articles of clothing that would have failed a basic inspection a few years back, and these aren’t from no-name bargain basements. Americans are getting a taste of a Third World existence for the first time in most of their lives; we’ll see how this plays out.