U.S. homeownership has fallen to its lowest mark in more than 50 years as rising prices put buying out of reach for many renters.
The share of Americans who own their homes was 62.9 percent in the second quarter, the lowest rate since 1965, according to a Census Bureau report Thursday. It was the second straight quarterly decrease, down from 63.5 percent in the previous three months.
First-time buyers have been struggling to find affordable properties as low mortgage rates and an improving job market spur competition for a tight supply of listings. Home prices rose 5.2 percent in May from a year earlier, according to the S&P CoreLogic Case-Shiller index of values in 20 cities released this week.
In the central Indiana area, existing home prices rose to an average of $203,913 in June, up 5 percent from a year ago.
“One of the biggest hurdles now is affordability,” Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said before the Census Bureau report was released. “Home prices are rising so much faster than incomes, so it’s hard for buyers to save for a down payment.”
The homeownership rate reached a peak of 69.2 percent in June 2004.