U.S. homeownership rate drops

The nation’s homeownership rate slipped to its lowest level in 19 years in the first quarter as more households rented and home sales remained low.

That’s according to the Census Bureau, which said 64.8% of homes in the U.S. are owner-occupied, the lowest share since the sec- ond quarter of 1995.

Homeownership rates topped 69% at various periods in 2004 and 2005 before the foreclosure crisis and housing crash pushed millions of Americans back to renting.

Meanwhile, the Census Bureau said the rental vacancy rate stayed near record lows at 8.3%, and the median rent for available units nationwide hit an all-time high of $766 a month.

Housing economists cite a number of factors. Tight credit and higher home prices are keeping some would-be buyers out of the market.

Others are sidelined by student debt or concern about the soft job market.

And some evidence sug- gests that young adults are postponing homeownership, either by choice or through economic necessity.

“I think a lot of households will be renting instead of buying for some time,” said Stan Humphries, chief economist at real estate website Zillow.

Just 36.2% of households headed by someone younger than 35 owned their home in the first quarter, down from 41.3% in 2008 — although the homeownership rate has fallen across every age group except for senior citizens.

The homeownership rate is lowest in the West, at 59.4%.