After falling to the lowest level in 50 years, the U.S. homeownership rate bounced up slightly in the third quarter of this year. At 63.5 percent, it is still lower than the same time a year ago and significantly down from its high of 69.2 percent at the height of the last housing boom, according to the U.S. Census. While the merits of homeownership are certainly debatable, household formation is a clear driver of economic growth, and the gains there are accelerating as well. Household formation, which is the number of newly occupied housing units (both rented and owned) climbed by just more than 1.1 million. While most of the household formation during the housing recovery has been on the renter side, just under half of those formed in the last quarter were owners. “Though the majority of household formation is still renters, the owner-occupied share was at its highest level in a decade. Both the improving economy and the aging of millennials will give homeownership a boost,” said Jed Kolko, chief economist at Indeed, an online job site.
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