The US home ownership rate continues to decline
Home ownership at a 19 year low.
Of course home ownership rates declined during the mortgage/foreclosure crisis, but they are still dropping now in the housing recovery. Below 65% now. Down from nearly 70%. That is 15,000,000 new people in the rental market over the past several years.
I would think that home ownership rates would have bottomed out and be on the rise now that housing and the economy are well into recovery. Not so. In fact, Sam Zell says that because of deferred family formation, home ownership rates will decline to 55%. Think about that; another 30,000,000 Americans renting. I'm not sure I believe it, but the implications for real estate investing are beyond profound.
Do you agree with Zell? How will this trend affect your long term strategy?