More Enjoy American Dream Homeownership Climbs To 14-Year High
Homeownership in the United States climbed in 1995 to its highest level in 14 years, an improvement that Federal Reserve Chairman Alan Greenspan said reflects steady economic policies and low inflation.
“Neither inflation nor boom-and-bust cycles are friends of housing,” Greenspan said Thursday at a conference sponsored by the Department of Housing and Urban Development.
“The most far-reaching and lasting way in which the Fed can promote expansion of housing opportunities is by doing what we can to provide a stable platform for economic growth,” he said.
HUD released statistics at the conference showing that 1.4 million Americans became homeowners last year, pushing the national ownership rate to 65.1 percent in the final three months of the year. That’s the highest level since 1981.
The rate was 64.2 percent in the final quarter of 1994 and the rise of 0.9 percentage point was the biggest increase in three decades, HUD Secretary Henry Cisneros said. The improvement showed “a strong economy and the desire for families to invest their hard-earned money in a home,” he said.
Cisneros said gains came in all regions except the West and among groups that traditionally lag in homeownership. The rate for minorities rose to 44.3 percent, up from 43.7 percent, and for households with incomes of $39,000 or less to 49.4 percent, up from 48.6 percent.
Homeownership peaked at 65.5 percent in 1980, then began a decade-long slide as home prices and mortgage rates rose.
Greenspan said the central bank’s success in lowering inflation was a key factor spurring current high levels of homeownership.