The homeownership rate was 65.4% in the third quarter of 2021, nearly flat compared to the previous quarter, according to the latest data from the Commerce Department.
National vacancy rates in the third quarter 2021 were 5.8% for rentals (-0.6% YoY) and 0.9% for owned homes (-0.86% YoY).
Regional breakdown:
– Midwest: 70.9%
– South: 67.0%
– Northeast: 4.3%
– West: 4.4%
Industry Response:
“While the homeownership rate slid across all age groups from a year ago, there were quarterly gains for people in the ‘under 35 years’ and ‘45 to 54 years’ categories, which pointed to the active involvement of millennial and Gen-X buyers in this year’s real estate markets,” said George Ratiu, manager of Economic Research for realtor.com®, in a statement.
“The homeownership rate saw a boost during the housing market’s recovery stage during the pandemic, rising from 65.3% in the first quarter of 2020 to 67.4% in the third quarter of 2020, as many Americans sought the relative safety of a home as a haven from the health and social distancing challenges,” added Ratiu. “However, the steep home price gains seen in a hot winter and spring 2020-21 market made it challenging for many first-time buyers to enter the market, leading to a slide in the homeownership rate from 67.4% in the third quarter of last year to 65.4% by the second and third quarters of 2021. As seasonal trends point toward a cooling in the overheated pace of the market, buyers are holding out hope that slowing inventory turnover will provide additional opportunities and better prices in the months ahead.”
