Home Ownership Slips but Household Formation Rises

Washington, DC, April 29, 2015—U.S. homeownership slipped to a 25-year low in the first quarter, but sustained strong gains in the pace at which Americans are setting up homes supported the view that the housing sector will boost economic growth this year, reports Reuters.

The seasonally adjusted home ownership rate dipped to 63.8%, the lowest since the fourth quarter of 1989, the Commerce Department said on Tuesday. The rate, which peaked at 69.4% in 2004, was 64.0% in the fourth quarter.

Household formation, however, increased by 1.5 million in the first quarter from the same period in 2014. It was up 1.7 million in the fourth quarter.