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The pulse Disappearing Homeowners The homeownership rate fell to its lowest level since 1995, reflecting a rising demand for rentals. D espite improving home prices, homeownership is starting to slide. Analysts pinpoint this phenomenon to a wide array of factors: tight credit, shrinking for-sale inventory, the challenges saving for a down-payment bring, and more rental singlefamily supply, which have all played a part in the decline in homeownership. According to the National Association of Realtors, the number of homes on the market in March was down 16.8 percent from the same period in 2012. In total, owner-occupied residences slipped to 74.5 million from 74.6 million, according to the latest numbers released by the U.S. Census Bureau. Regionally, homeownership trends remained flat or dipped. Despite the downward trend, consumers are curiously, albeit cautiously, feeling upbeat about the housing outlook. The positive stance comports with data showing that home prices continue to rise, revealing a sustained buildup in demand for inventory. 18 | The M Report Feel the country is Feel the country is moving in the right moving in the wrong economic direction economic direction In the following year, feel that home prices will . . . Go Up Go Down Stay the Same {35%} {35%} {48%} {10%} {37%} {34%} {34%} {33%} {15%} {49%} march 2013 march 2013 march 2013 march 2013 march 2013 march 2012 march 2012 march 2012 march 2012 march 2012 Feel they would buy if they were going to move Feel they would rent if they were going to move In the following year, feel that household income will . . . Go Up Go Down Stay the Same {64%} {32%} {38%} {21%} {39%} {66%} {30%} {43%} {12%} {44%} march 2013 march 2013 march 2013 march 2013 march 2013 march 2012 march 2012 march 2012 march 2012 march 2012 About the Numbers: The data was compiled from the U.S. Census Bureau Q1 2013 data on housing vacancies and homeownership, the Fannie Mae monthly housing survey, and Trulia's trends report.