Homeownership rate has dipped close to the lowest recorded mark in 30 years.
Homeownership rate has hit a number really close to the lowest point in the span of three decades. But economists say there is a strong likelihood that it will not go any lower. In a report by Realtor.com, there has been a tiny surge in the rate recorded for the last quarter of the year from 63.4 percent to 63.7 percent. However, it is still very close to the lowest rate in 30 years.
Adjusted for seasonality, homeownership rate maintained its course at 63.5 percent for the third quarter. There has also been an increase in the number of homeowner households by 123,000 in the same quarter compared to last year. Renter households also enjoyed a massive growth of 1.3 million. Moody's Analytics chief economist Mark Zandi said that these figures are showing that the homeownership rate that has been steadily dropping for more than 10 years now is finally starting to plateau. He said, "I don't expect any significant increase anytime soon, but I think we're finally at bottom."
However, these estimates may not be as telling of the real situation on the ground with some economists pointing at the trend that the homeownership rate is declining. They say that despite the housing market showing signs of improvement, it still leaves the renter household segment behind.
According to a post in Newsday, it has been said over and over again that a big part of the "American Dream" is homeownership. Data supports this with 64 percent of households in America purchased or owned. The United States government has played a big role by extending subsidies to financial institutions just to keep this "dream" alive for many people. In fact, in 2008, big name lenders Fannie Mae and Freddie Mac filed for bankruptcy but were bailed out by the government.
