U.S. Homeownership Rate Falls to Lowest Since 1995

The ugly  TREND of  "not being able to afford a mortgage" is driving investors. 

The U.S. homeownership rate fell to the lowest in almost 18 years, reflecting rising demand for rentals and investor purchases in the housing market.

The share of Americans who own their homes was 65 percent in the first quarter, down from 65.4 percent a year earlier and the lowest level since the third quarter of 1995, the Census Bureau reported today.

Investors are buying single-family homes and renting them out to capitalize on demand among families unable to qualify for a mortgage.

The homeownership rate will continue to fall throughout the year. It peaked at 69.2 percent in June 2004, spurred by easy credit.

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