The number of Americans who own their homes is at the lowest rate since the 1960s. According to Bloomberg a multiyear decline has occurred because of families who are still struggling to climb out of the financial crisis while deciding to rent instead of own.
The U.S. homeownership rate was 63.4 percent in the second quarter, down from 63.7 percent in the previous three months, the Census Bureau reported Tuesday. That’s the lowest rate since 1967.
Rates have not been helped by more stringent mortgage standards which now avoid predatory lending and focus on a family’s actual ability to repay their mortgage over a 30-year period. The average household income in June was also 4 percent below a record high set in early 2008.
In the meantime, home values have increased by 34 percent since bottoming out in 2012. Prices in 20 U.S. cities climbed 4.9 percent in May from a year earlier according to the S&P/Case-Shiller Index.
The study found that a surge in multifamily construction has also caused leasing costs to soar, as renter-occupied units increased by 2 million in Q2.
The rental vacancy rate fell to 6.8 percent from 7.1 percent in the first quarter and 7.5 percent a year earlier. The media asking rent price has also increased to a high of $803.