Home ownership is collapsing in America

% of Americans owning their home, annual %, 1984 to 2012

I’ve previously written about the US housing market, in particular plunging home ownership rates at the same time the number of folks renting has been sharply increasing. That trend doesn’t show any sign of reversing soon. The chart above shows the percentage of Americans who own their own home, a rate that has hit news lows. Specifically, from 1994 to 2004 home ownership increased at an average rate of 0.75% per year but from 2006 to 2012 home ownership has decreased at an average rate of -1.34%, almost twice as fast as it rose. Clearly as the housing bubble continues to deflate and the US economy teeters into recession this number won’t improve, short of additional intervention from the Federal Reserve and, The Bank of England and the ECB. Can QE 3 be far off? I don’t think so.

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