Third Quarter Homeownership Rate Edges Up

The Census Bureau yesterday reported the U.S. homeownership rate rose slightly in the third quarter, to 64.4 percent, from 64.3 percent in the second quarter and from 63.9 percent a year ago.

The homeownership rate was highest in the Midwest (69.0 percent), followed by the South (65.4 percent), the Northeast (61.5 percent) and the West (60.2 percent). The homeownership rates in the West was higher than a year ago, while rates in the Northeast, Midwest and South were not statistically different from the rates a year ago.

The report said the national rental vacancy rate of 7.1 percent was 0.4 percentage points lower than a year ago (7.5 percent) and not statistically different from the second quarter (6.8 percent). The homeowner vacancy rate of 1.6 percent was virtually unchanged from a year ago and 0.1 percentage points higher than the second quarter (1.5 percent).

The report said 87.6 percent of housing units in the United States in the third quarter were occupied; 12.4 percent were vacant. Owner-occupied housing units made up 56.4 percent of total housing units, while renter-occupied units made up 31.2 percent of the inventory in the third quarter 2018. Vacant year-round units comprised 9.5 percent of total housing units, while 2.9 percent were for seasonal use.

The report said 2.4 percent of total units were for rent, 0.9 percent were for sale only and 0.8 percent were rented or sold but not yet occupied. Vacant units that were held off market comprised 5.4 percent of the total housing stock–1.5 percent were for occasional use, 1.0 percent were temporarily occupied by persons with usual residence elsewhere and 2.9 percent were vacant for a variety of other reasons.

The third quarter rental vacancy rate was highest outside Metropolitan Statistical Areas (9.2 percent). The rates in principal cities (7.0 percent) and in the suburbs (6.6 percent) were not statistically different from each other. The rental vacancy rate in principal cities was lower than the third quarter 2017 rate, while rates in the suburbs and outside MSAs were not statistically different from a year ago.

The homeowner vacancy rate was lowest in the suburbs (1.4 percent). The rates in principal cities (1.7 percent) and outside MSAs (2.0 percent) were not statistically different from each other. The homeowner vacancy rates in principal cities, in the suburbs, and outside MSAs were not statistically different from the third quarter 2017 rates.

The third quarter rental vacancy rate was highest in the South (8.7 percent) followed by the Midwest (7.6 percent), the Northeast (6.0 percent) and the West (5.1 percent). The rental vacancy rates in the South and West were lower than the third quarter 2017 rates, while rates in the Northeast and Midwest were not statistically different from the third quarter 2017 rates.