The homeownership rate for 2Q 2016 decreased to 62.9% according to the Census Bureau's Housing Vacancy Survey (HVS), which is the lowest percentage since 1965. "This was a second straight quarterly decrease," Na Zhao writes for NAHB's Eye on Housing.
The HVS found that while the 35-44 age group had a 0.3% increase in homeownership from 2Q2015 to 2Q2016, individuals under 35 or aged 55-64 saw a 0.7% decrease in homeownership.
The HVS also provides a timely measure of household formations – the key driver of housing demand. Although it is not perfectly consistent with other Census Bureau surveys (Current Population Survey’s March ASEC, American Community Survey, and Decennial Census), the HVS remains a useful source of relatively real-time data.
The housing stock-based HVS revealed that the number of households increased to 118.3 million for the second quarter of 2016, almost a million higher than a year ago. On a less volatile one-year moving average basis, the pace of household formations slowed down to less than 1% in 2016.