Home Ownership Hits 48-Year Low

from Mark J. Perry . . .

Home ownership US

The Census Bureau reported this morning that the US homeownership rate fell to a 48-year low of 63.4% in Q2, the lowest level since Q1 1967. Thanks to a political obsession with homeownership, fueled by lower credit standards that made housing artificially more affordable, the homeownership rate increased from about 64% in the early 1990s to 69.2% in 2004. The artificial increase in homeownership fueled an artificial home price bubble, which eventually crashed, and contributed to the homeownership rate falling to the lowest level in almost half a century. The political push for artificially increasing homeownership to an unsustainable level could qualify as one of the worst public policy failures in at least a generation, maybe longer?

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