According to the U.S. Census Bureau, homeownership fell in the second quarter of 2010 to 67%, its lowest level in over ten years. The level of homeownership dipped in the South and West and was lowest in the West with only 61% of all residents owning homes while the Midwest enjoyed the highest homeownership rate at 71%.
While home sales rates are still staggering after the tax credit expiration, vacancies on non-rental units are falling as well (while rental home vacancies remain at 10%).
Nationally, 57% of all housing units were owner-occupied in the second quarter and renter-occupied homes were 28% of all units.
Given that the $8,000 and $6,500 tax credits stimulated the real estate sector this spring, is it surprising that homeownership rates aren’t on the rise, rather they’re declining? Please tell us in the comments what you think of this news.
Joe Loomer
July 28, 2010 at 7:01 am
Areas with large military facilities can still market with the tax credit as servicemembers who deployed for 90 days or longer in the year leading up to April 30th still have another year to purchase a home and receive the credits. Same applies to government employees in the intelligence and foreign service sectors.
Navy Chief, Navy Pride
Tracy Carlson
July 28, 2010 at 11:51 am
This isn’t surprising to me. Until the job market rebounds, home ownership isn’t top priority for a lot people. Keeping a current job or finding one is more important (as it should be). When the job market picks up and more people are employed, we’ll see more interest in the housing market and more people willing and able to purchase a home.
Angie Perez aka @njretoday
July 29, 2010 at 1:14 am
Well said Tracy. It’s now about sustainability for many people when considering to buy a home. In my particular state, many of the local markets have made substantial price adjustments making home ownership affordable again. I remember that as recent as 5 years ago certain NJ towns had a buy in price that was in some cases 40% higher that what is it now. That’s good buyer news. . .I think a lot of skeptics are now seeing the value of the home buyer tax credit. As with most things, you don’t know what you’ve got until it’s gone. The tax credit worked according to the numbers. It easyed the market out of a difficult time. But the road ahead is just as bumpy due other market forces: costs of living, taxes, employment, etc.Only time will tell.
Miami Condo Shop
July 28, 2010 at 12:25 pm
The surging foreclosures are a major contributing factor to this development. Lenders are speeding up foreclosures as borrowers fall behind in mortgage payments. There are a lot of folks out there losing their homes and either moving in with family or renting places to live.
Al Lorenz
July 28, 2010 at 4:56 pm
Here is an example of market forces overwhelming attempts by the government to control the market. Politicians must be wishing they could repeal the rules of economics.
Utah Realtor
July 30, 2010 at 11:03 am
I’m hoping the lenders ease up a bit and let some people who’ve genuinely struggled over the past few years get back into a home if their situation has since improved.
Nick Nymark
July 30, 2010 at 7:35 pm
I am an agent here in the midwest with Coldwell Banker First Realty in Fargo, ND. I am licensed in both ND & MN and around here in the Fargo – Moorhead area the real estate market seems to still be doing well. I feel fortunate to be doing business here.