fewer home-owners as a new trend (vs. a short-term thing)

From Haya Al Nasser in USA Today...

The rate of homeownership is forecast to keep tumbling in the next decade to lows not seen since the 1980s, a trend that could redefine a key element of the American dream even after the housing market recovers.

The percentage of households that own homes hit a peak of almost 70% in 2004 and 2005. By the second quarter of this year, that slipped to 67.4%, according to the Census Bureau. Now, a University of Utah analysis projects it'll drop to about 63.5% by 2020 — the lowest since 1985....

Homeownership has long been viewed a key to building stable communities and middle-class families. Federal policy encouraged it with tax credits and government-backed mortgages. Now, demographic changes, strict mortgage rules, energy-saving policies and lessons learned in this housing crisis are driving more people to rent....

Renting also may be more appealing because:

• Households are smaller. The youngest of 79 million Baby Boomers will turn 56 by 2020 and many will be empty nesters who favor small homes. The 20-something millennial generation is at a peak age for renting....

•It's tougher to buy. The subprime mortgage crisis is tightening credit availability.

•Some are new to the USA. Most recent immigrants rent.

Homeownership is not inherently good or bad, Obrinsky says.

A nice reminder at the end. A lot of people mistakenly see huge, general advantages in home ownership for individuals. But the transactions costs of buying and selling are huge-- and the black hole of renting (not building up equity) is offset by the black hole of buying (higher insurance, interest payments [offset only in part by the tax deduction], maintenance costs in time and effort, and so on).