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Third Quarter Home-ownership Lowest in 18 Years, but Higher Than Q2

by devteam November 6th, 2013 | Share

Homeowner and rental vacancy rates were essentially flatrnduring the third quarter of 2013.  ThernCensus Bureau reported on Tuesday that the vacancy rate for residential rentalrnproperty was 8.3 percent, up 0.1 percentage points from the second quarter andrn0.3 percentage points lower than in the third quarter of 2012.  Homeowner vacancies were virtually unchangedrnfrom both the previous quarter and a year earlier at 1.9 percent.</p

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There were approximately 132.85 million housing units inrnthe U.S. in the third quarter, an increase of about 363,000 from one yearrnearlier.  The number of occupied unitsrnwas 114.77 million, up from 114.39 million in Q3 2012. Of those occupied units about 74.9rnmillion were occupied by their owners during both periods while rentersrnoccupied 39.87 million units in the third quarter of 2013 compared to 39.51rnmillion during the same period in 2012.</p

Of the 18.1 million vacant properties reported in bothrnperiods, approximately 13.6 million were considered year round properties andrnof those 3.7 million were available for rent in the recent period compared torn3.8 million the year before.  The numbersrnof units for sale only were virtually unchanged at 1.5 million.</p

Rental vacancies peaked at 11.1 percent in the thirdrnquarter of 2009 and hit a recent low at 8.2 percent in the second quarter ofrnthis year.  Homeowner vacancies held atrnrecent highs of 2.8 to 2.9 percent throughout 2008 but dropped below 2.0rnpercent for the first time since the financial crisis began in the secondrnquarter of this year.</p

The rental vacancy rate inside of major cities (8.2rnpercent) did not differ significantly from the 7.9 percent rate in thernsuburbs.  The rate outside ofrnMetropolitan Statistical Areas was the highest at 10.1 percent.  Vacancies were highest in the south at 10.1rnpercent followed by the Midwest at 9.1 percent. rnThe Northeast had a 7.2 percent rental vacancy rate and the West was atrn5.9 percent.</p

Homeowner vacancies rates were highest outside MSAs (2.4rnpercent) and lowest in the suburbs (1.7 percent).  Inside principal cities the rate was 2.2rnpercent.  Regionally, the South again hadrnthe highest rate, 2.2 percent and the Midwest the second highest at 2.0rnpercent.  The West and Northeast followedrnat a distance with rates of 1.6 and 1.5 percent respectively.</p

The median asking price for vacant rental units in thernthird quarter was $736 per month.  Thernmedian asking price for vacant units for sale was $140,600.</p

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The Census Bureau also released datarnon homeownership.  Homeownership has trended down fairly steadily since peaking inrnmid-2006.  The rate picked up slightly inrnthe third quarter rising from 65.0 to 65.3 percent and was 0.2 percentagernpoints lower than a year earlier but the Bureau said that seasonality factorsrnmade the small changes statistically insignificant.</p

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Forrnthe third quarter 2013, the homeownership rates were highest in the Midwest (69.6 percent)rnand lowest in the Westrn(59.5 percent). The homeownership rates in the Northeast,rnMidwest, South, and West were not statisticallyrndifferent from thernrates a year ago.</p

As always thernhomeownership rate was highest among those 65 years of age or older (81.1rnpercent) non-Hispanic Whites (73.3 percent) with incomes higher than the medianrnfor their area (79.9 percent.)  Ratesrnwere lowest for those under age 36 (36.8 percent),rnAfrican-American (43.1 and family income below the median (50.6 percent).

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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