U.S. homeownership at 18-year low in second quarter

U.S. homeownership at 18-year low in second quarter - MarketWatch

Homeownership in the United States fell again in the second quarter to the lowest level since the third quarter of 1995, suggesting many Americans are becoming renters. The seasonally adjusted homeownership rate fell to a seasonally adjusted 64.8% from 65.0% in the first quarter, the Commerce Department said Tuesday. The residential rental vacancy rate dropped to 7.5% in the second quarter, the lowest level since 1997 and well below the peak of 11.1% in 2009.The increased demand to rent is driving prices higher. In the second quarter, the median asking monthly rent was $756, up from $735 one year ago. In another closely-watched sector, the homeownership rate among those under 35 was 35.9% in the second quarter, down from 36.7% one year earlier. Many analysts say the housing sector will remain weak until first-time buyers return to the market.