patrick.net

http://ochousingnews.com/blog/home-ownership-rate-hits-new-lows/

US policymakers want to increase home prices and maximize the home ownership rate. Prices are up, but the home ownership rates continues to drop.

Declines in the home ownership rate were inevitable when the housing bubble popped. Foreclosures pushed people out of their homes and into rentals at an unprecedented rate. While policymakers have managed to manipulate supply to cause a rise in home prices, demand still hasn’t picked up, and the home ownership rate continues to slide.

It shouldn’t be too surprising the home ownership rate isn’t rising. New home sales are weak, and so are pending home sales, recently slipping 1.1%. Further, new multi-family construction is up, so many more rental units are coming to market. For the home ownership rate to rise, more owner-occupant sales must occur than new rental units come on line. Right now, that isn’t happening.

Source: http://ochousingnews.com/blog/home-ownership-rate-hits-new-lows/#ixzz39BHW7Bsq

#housing