64%, which was typical for the time frame from the mid 1980″s to mid 1990″s. Currently, the national average has dropped to around 65-66% from the high of 69%.
Apartment Sector Continues to Rise as Home Buyers Diminish
The U.S. Census Bureau recently reported a net increase of 1.4 million households that have moved into rental housing this year. Clearly, many in single-family homes converted from ownership to rental. A new Reis Inc. survey of professionally managed apartment communities in major metro areas found vacancy rates stood at 5.9 percent during the latest quarter, the lowest since 2007 for that class of apartment.
Freddie Mac has described the rental housing market as “a bright
spot” in the housing sector, forecasting that 2011 will end with a “thud” for home sales. Freddie Mac chief economist Frank Nothaft states, “Much of the rental demand is from young and newly formed households who have decided to postpone homeownership in favor of renting during unsettled economic times.”
Indeed, research shows that the decline in the homeownership rate has been sharpest for those household heads under the age of 30. Nothaft concludes, “With rental demand rising and apartment economics improving, the multifamily sector is a positive signal for the U.S. housing industry.”
Article posted on the National Apartment Assocation website. to be redirected.
Digested From “Net New Renters 1.4 Million, Net New Home Buyers 0” United Press International (10/18/11) by Steve Cook