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Rate of Homeownership Remains Unchanged
National Association of Home Builders / November 5, 2013
The homeownership rate remained unchanged at a seasonally adjusted reading of 65.1% during the third quarter of 2013 according to Census data. The reading is below its 20-year historical average of 66.9% and 4.3 percentage points below the peak reading of 69.4% in the second quarter of 2004. However, the flat reading follows three consecutive quarters of decline.
Homeownership increased over the second quarter of 2013 for all age groups except households headed by those aged between 55 and 64 years, who saw a decline of 0.5 percentage points. For the most recent reading, the largest percentage point increase from last quarter occurred for households headed by those aged between 35 and 44 years, who saw an increase of 0.8 percentage points. Over the coming years, this age group and the under 35 cohort are key population segments to watch. It will be important to distinguish cyclical (business cycle based) declines and recoveries versus long-term structural changes on the views of homeownership for this age group.