Great graph over at Calculated Risk about home ownership rates.
CR points out that home ownership rates are now back to the year 2000 level. CR thinks we may get to 66%, which is where it was in the late 1990s. CR points to demographics as the reason home ownership is higher. The average before that was around 65%. I tend to think that we may get back to 65% only because many Baby Boomers own more than one home. As these folks start to sell due to aging and downsizing, there just won’t be enough of the Xers and Yers to absorb these homes. If immigration increases, these homes may get absorbed, but they won’t get absorbed at current demographics, or at least not at the prices the Boomers would like.