The homeownership rate continued to decline in the second quarter of 2015, hitting a 48-year low.
The seasonally adjusted homeownership rate declined to 63.5%, down from 64.7% in the second quarter of 2014, according to estimates published by the Commerce Department on Tuesday. (The homeownership rate, not seasonally adjusted, hit 63.4%.) That is the country’s lowest homeownership rate since 1967.
In part, the decline in homeownership reflects a positive trend: The number of rental households is growing. That likely reflects the fact that younger people are leaving their parents’ homes and striking out as renters on their own.
Total households in the United States grew to 117 million in the second quarter of 2015, up from 115 million in the second quarter of 2014.
The number of owner households decreased by 400,000, while the number of renter households increased by 2 million. While that is a good sign for the rental market, overall economists said that a lack of home buyers is likely a bad sign that incomes aren’t keeping pace with rising home prices, keeping young buyers out of the housing market.