HOMEOWNERSHIP RATE REACHES HIGHEST LEVEL IN THREE YEARS

Source: Housing Wire 

The national homeownership rate reached its highest level since the fourth quarter of 2014, increasing slightly in the last quarter of 2017, according to the Quarterly Residential Vacancies and Homeownership report from the U.S. Census Bureau.

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The homeownership rate remained statistically unchanged, inching up to 64.2 percent in the fourth quarter. This is up from 63.7 percent the year before and 63.9 percent in the third quarter.

“After bouncing around near 50-year lows for the past few years, the national homeownership rate finally seems to be gaining sustainable, meaningful upward momentum,” Zillow Senior Economist Aaron Terrazas said. “The fourth quarter of 2017 was unseasonably strong, driven by buyers determined to make a deal in a highly competitive market.”

Among Millennials, the homeownership rate ticked up slightly from 35.6 percent to 36 percent. Among older generations, the homeownership is significantly higher at 75.3 percent for those aged 55 to 64 years and 79.2 percent for those aged 65 years and older.

“What's even more positive news for the housing market is that much of the increase in the homeownership rate over the past year has come from 18 to 44-year olds,” Trulia Chief Economist Ralph McLaughlin said.

Among the non-Hispanic white population, the homeownership rate increased from 72.5 percent in the third quarter to 72.7 percent in the fourth quarter. However, homeownership rates for other ethnicities are much lower.

The black homeownership rate increased 0.1 percentage point, but remains far below average at 42.1 percent in the fourth quarter. The Hispanic homeownership rate saw the highest increase, rising .5 percentage points to 46.6 percent.

The national homeowner vacancy rate decreased 0.2 percentage points from last year at 1.6 percent, while the national vacancy rate for rental housing remained unchanged at 6.9 percent.

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https://www.housingwire.com/articles/42403-homeownership-rate-reaches-highest-level-in- three-years