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Th e M Rep o RT | 39 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SERVICING The laTesT U.s. Homeownership rate sinks to 64.4% With more Americans choosing to rent, homeownership hits a 19-year low. t he national homeown- ership rate dropped to a new 19-year low in the third quarter, sinking further as more Ameri- cans opted to rent rather than purchase a home. According to a report from the U.S. Census Bureau, the home- ownership rate last quarter fell to 64.4 percent, down 0.3 percent- age points from Q2 and nearly a full percentage point from the same quarter last year. The last time homeownership in the country was this low was in the first quarter of 1995, when the national rate was 64.2 percent and rising. Except for minor bumps from time to time, the U.S. homeownership rate has fallen steadily throughout the housing crisis and recovery. Paul Diggle, property econo- mist at Capital Economics, says homeownership is likely to keep slipping. "Our long-held position is that the homeownership rate will bottom out at 64 percent," Diggle stated. "That said, tentative signs that cash-buyers and investors are starting to back away at the same time as first-time buyers are becoming more active mean that the floor for the homeown- ership rate is within sight." As of September, first-time homebuyers accounted for about 29 percent of existing-home sales for three straight months, accord- ing to the National Association of Realtors. The group's historical data suggests first-time home- owners should make up about 40 percent of sales. In recent years, more Americans have taken to renting, even as the costs outweigh homeownership. According to the Census Bureau, the vacancy rate for rental homes was 7.4 percent in the third quarter, down from 8.3 percent last year. In a small piece of good news, homeownership ticked up slightly among younger Americans, including the millennial age group that has so far avoided the market. The government estimates the homeownership rate among Americans 35 years old or younger was 36 percent in Q 3, up from 35.9 percent in Q2 but still significantly down from 36.8 percent a year ago. Homeownership was mostly down across the other age brackets, falling to 59.1 percent among Americans between the ages of 35 and 44, 70.1 percent between 45 and 54, and 80 percent for those 65 and older. Homeownership among those between the ages of 55 and 64 edged up to 76.6 percent, its highest level since the second quarter of 2013.