The national homeownership rate increased slightly from last year, but was not statistically different from last quarter, according to the latest release from the U.S. Census Bureau.
The homeownership rate in the second quarter came in at 63.7%, up 0.8 percentage points from last year’s 62.9% but only 0.1 percentage points from the first quarter’s 63.6%.
Last year’s 62.9% represented the lowest rate for homeownership since 1965. Since then, the homeownership rate hovered close to this 50-year low.
The Census Bureau report also showed that national vacancy rates for rental housing increased in the second quarter to 7.3%. This is up 0.6 percentage points from 6.7% last year and up 0.3 percentage points from last quarter’s 7%.
On the other hand, the homeowner vacancy rate decreased 0.2 percentage points from the second quarter 2016 and the first quarter this year to 1.5%, which is the lowest level since the first quarter of 2001.
The homeownership vacancy rate inside principal cities rests even lower at 1.4%, the lowest level since the fourth quarter of 1980, when the rate also sat at 1.4%.
Surprisingly, despite being the most affected by rapidly rising home prices and fierce competition in the housing market, Millennials were the only generation to see an increase in their homeownership rate from last quarter.
The homeownership rate for those under 35 years of age increased a full percentage point from last quarter’s 34.3% to 35.3% in the second quarter, which is the highest level since the third quarter of 2015.