Rental Vacancy at 12-Year Low, Homeownership Rate Steady


Eye on Housing

According to the Census Bureau’s quarterly survey, rental vacancy fell 10 basis points to 8.2%. Prior to the second quarter of 2013, vacancy rates have not been this low since 2001. The tightening rental market is a reflection of an improving economy. The trend could also be an indication of future housing demand as renting is typically a first step in household formation.

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Homeowner vacancy, provided in the same survey, increased in the fourth quarter of 2013. The current reading is 2.1% or 20 basis points above last quarter. The current reading is also 20 basis points above the fourth quarter of 2012.

The seasonally adjusted homeownership rate, according to Census data, was 65.1% during the four quarter of 2013. The seasonally adjusted rate has held constant for three consecutive quarters. The current seasonally adjusted rate is well below the historical 20-year average of 66.8%.

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The homeownership rate not…

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