The homeownership rate in the first quarter of 2014 is at the lowest since June 1995.
The rate of homeownership at the end of 1Q2014 was 64.8%, which is 0.2 percentage points lower than the first quarter 2013 rate of 65%, according to the U.S. Census Bureau.
The rental vacancy rates inside principle cities, in the suburbs and outside MSA’s were not statistically different from the first quarter 2013 rates.
Anthony Sanders, distinguished professor of real estate finance at George Mason University, says on his blog Confounded Interest, that he knows exactly why.
“Here is the reason why: declining real median household income, declining wage earnings growth, declining mortgage purchase applications,” he says.