U.S. homeownership falls to 19-year low as affordability worsens

BOSTON – The homeownership rate in the U.S. fell to a 19-year low as rising prices and tight credit kept many first-time buyers out of the property market.

The share of Americans who own their homes was 64.7 percent in the second quarter, down from 64.8 percent in the previous three months, the Census Bureau said in a report released Tuesday. The rate matched the level in the second quarter of 1995.

Housing has become less affordable and more difficult to finance for entry-level buyers, even as mortgage rates have held close to record lows. First-time purchasers accounted for 28 percent of all sales of previously owned homes in June, compared with about 40 percent historically, according to the National Association of Realtors.

U.S. home prices increased 9.3 percent in the 12 months through May, according to the S&P/Case-Shiller 20-city index released Tuesday.

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The homeownership rate for all Americans peaked at 69.2 percent in June 2004 and plunged as the housing market crashed, according to the Census Bureau.

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