US Rents Hit Record Highs, Homeownership Hit 18 Year Lows
|November 11, 2013||Posted by Staff under Economic Principles, High Cost of Land|
The raw homeownership rate of 65.0% was unchanged from last quarter and 0.4% lower than a year ago. And on a seasonally adjusted basis (not sure why homeownership is adjusted for seasons: people who live in a house in the winter generally live under a bridge in the summer?), the percentage of Americans who have a house declined from 65.2% to 65.1%: the lowest since 1995 [eighteen years ago and 18 is the period in the land price cycle].
Meanwhile, the median asking rent for US vacant housing units hit an all time high of $735 per month.
So rents are soaring. Which should mean that so are wages and/or personal income right? Wrong. So how sustainable are the soaring rents shown above? We will let Blackstone and all those other Wall Street firms capitalizing on record low (until recently) rates to become America’s largest landlords answer that one.
Ed. Notes: A few months later, this treated the topic in more depth.