Home ownership rates in America held steady over the past 2 quarters at 66.9%. At the housing peak in 2004 home ownership hovered around 69% but has been decreasing ever since.
IHS Global Insight economist Patrick Newport states in the Desert Sun the home ownership rate is expected to return pre 1995 levels.
The decrease in home ownership has been due in large part to the increase in foreclosures and tight credit. This could be good news for investors looking to enter the market or increase their market share as the decrease in ownership leads to higher demand for rental property.
Home prices in many areas of the desert are down by 40%-50% from their highs but rental prices have held relatively steady. The decrease in prices has lead to a increase in investors rate of return... leaving a few areas in the valley where investors are getting 10% return on their investment (ex. $1000/month in rent on $100,000 home).
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