The US home-ownership rate has dropped to an 18-year-low at about 65 per cent ”“ down from a peak of 70 per cent before the crash ”“ and economists say it is set to fall as low as 60 per cent. Some industry watchers are now asking if the US, after a multi-decade push towards home ownership, is shifting towards being a nation of renters.
“With the housing bubble bursting, the home-ownership rate was always going to drop. In some respects this has been healthy as the country has been reversing some of the excess. Not everybody should have been homeowners,” says Michael Gapen, senior economist at Barclays. “But there is now an open question about where it will settle.”
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