The US homeownership rate stands at 64.2% in 4Q 2017, up from 63.7% a year ago and 63.9% in 3Q according to the Census Bureau’s Housing Vacancy Survey, released January 30.
US Household Formations, Home Prices: 4Q 2017
After dropping to a cycle low of 62.9% in 2Q 2016, the national homeownership rate seems to be on a sustainable upward trend now.
The housing stock-based Survey revealed that the number of households increased to 120.2 million in 4Q 2017, 1.4 million higher than a year ago. The gains are largely due to strong owner household formation. Indeed, the number of homeowner households has been rising since 3Q 2016, while the number of renter households has been on the downward trend. In 2017, the number of homeowners increased by 1.5 million, while the number of renter households declined by 76,000.
Elsewhere, the Case-Shiller US National Home Price Index, reported by S&P Dow Jones Indices also Tuesday, rose at a seasonally adjusted annual growth rate of +8.4 per cent in November, unchanged from October. In the first eleven months of 2017, home price appreciation was +6 per cent on average, slightly higher than +5.3 per cent of 2016.
The Home Price Index from the Federal Housing Finance Agency rose at a seasonally adjusted annual rate of +4.9 per cent in November, slower than +7.1 per cent in October.