Home ownership hits lowest level since 1965 in the USA

 As the foreclosure crisis continues to wreak havoc on the housing market, a source of national pride has taken a sour turn. Home ownership is on the decline and, according to Les Sohar of Re/Max and soharworldhomes.com, the United States is fast becoming a nation of renters.

Last Friday, the Census Bureau reported that the percentage of people who owned a home had dropped to 65.9% during the second quarter -- its lowest level since the first quarter of 1998 and a far cry from the high of 69.2% reached in late 2004.
It's the lowest level since the Census Bureau started keeping quarterly records back in 1965 (before that, it recorded home ownership rates once a decade). The Census Bureau's statistics, however, do not factor in mortgage delinquencies.
"The combination of falling home prices, limited mortgage credit, continued liquidations, and better rental options is fundamentally changing the way Americans live," said Sohar. "I believe this change is only beginning and is moving the country towards becoming a rentership society." Many people are still technically considered homeowners who occupy their homes, even though they no longer make their mortgage payments. These "homeowners" can squat for months or even years, because banks have been slow to process foreclosures in recent months.
In a February housing finance report, the Obama administration stated that its goal was to "ensure that Americans have access to an adequate range of affordable housing options. This does not mean our goal is for all Americans to be homeowners."
Johnson thinks the market has already hit bottom and home prices should start appreciating, albeit slowly, this year. In addition, with such favorable interest rates and good deals on homes, it's hard for potential buyers to resist taking advantage of the opportunity for too much longer.