April 7, 2010
Gauging Housing
Wall Street Journal
By Nick Timiraos
... Because of rising foreclosures, the national homeownership rate has slid to about 67%, down from its 2004 peak of 69%. But the study finds that the current recession has led to an even steeper decline in household formation for rental-apartment markets.
That bodes ill for the housing market, says Gary Painter, a professor at the University of Southern California who authored the study, because initial increases in household formation will disproportionately come from renters, which may cause the homeownership rate to fall further...