Homeownership Rate Could Reach Historic Low

New York, NY, July 25, 2011 -- The U.S. homeownership rate could fall below historic lows depending on how the foreclosure issue progresses, according to a report by Morgan Stanley.

The national rate was 66.4% at March 31, but would be 59.7% without an estimated 7.5 million delinquent homeowners who may be forced into renting, Morgan Stanley analysts said.

The lowest U.S. homeownership rate on record was 62.9% in 1965, the first year the Census Bureau began reporting the data.

The homeownership rate reached an all-time high of 69.2% in 2004.

The shift provides opportunities for builders of multifamily homes and investors in single-family houses leased to renters.