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US Homeownership Rate Remains Low

The United States Census Bureau reported Tuesday that the nation's homeownership rate remained at its lowest level in more than a decade, as rising foreclosures and weak demand kept potential buyers on the sidelines.

A reported 66.9 percent of American households were owned by their occupants in the third quarter, the same percentage as in the previous quarter.  The last time the rate was lower was in 1999, when 66.7 percent of Americans owned their homes.  The rate had been steady at 64 percent for decades until 1995 when moves by President Clinton and later President Bush helped to increase the rate.

The nation's homeownership rate peaked in 2004, climbing above 69 percent for the first time.  But the rate has been in a state of gradual decline since the housing bubble burst in 2006.  Record numbers of foreclosures across the nation and tighter lending criteria are expected to continue to drive the rate down, and most analysts estimate it will eventually drop below 1995 levels.

The recent housing crisis has brought into question the government's role in promoting homeownership.  The majority of experts agree that both Bush and Clinton placed too much emphasis on the practice, promoting and enabling loans through legislation for borrowers with bad credit or those with very small down payments.

About 18.8 million homes, or 14.4 percent of all existing houses and apartments, were vacant, the Census Bureau reported.  Excluding vacation homes, the rate is at 11 percent.  That number of vacant homes has soared over the last four years from about 16 million at the beginning of 2006.  The number has been hovering around 19 million since the end of last year.  The Bureau reports that there are a total of about 131 million housing units across the nation.

About 2.5 percent of primary residences were vacant and listed for sale and 10.3 percent of year-round rental properties were listed as vacant and for rent.  Banks have seized well over 800,000 homes through 2010's first nine months and are on pace to eclipse a million for the year.