(Bloomberg)—The U.S. homeownership rate fell to the lowest level in more than a year as rising prices and a tight supply of starter homes put buying out of reach for many renters.
The share of Americans who own their homes was 64.1% in the second quarter, the lowest since the third quarter of 2017, according to a Census Bureau report Thursday. It was the second straight decrease, down from 64.2% in the previous three months and 64.3% a year earlier.
This year’s drop in mortgage rates and the strong job market have only added to competition for entry-level homes, driving up prices for a limited supply of properties and slowing sales. The median price of a previously owned U.S. home rose 4.3% from a year earlier to a record of $285,700, while sales dropped 2.2%, the National Association of Realtors said this week.
To contact the reporter on this story: Prashant Gopal in Boston at [email protected].
To contact the editors responsible for this story: Debarati Roy at [email protected]
© 2019 Bloomberg L.P.