The sharp increase in layoffs and foreclosures across the nation after 2006 has weighed on the homeownership in subsequent years. Not surprisingly, the states with the sharpest declines in their homeownership rates were concentrated in those states where subprime lending was strongest during the housing boom including Nevada, California, and California.
South Carolina and Vermont were among the five states that experienced the smallest change in homeownership between their peak and 2011. Both of these states are among the top five for their homeownership in 2011 rate as well.
North Dakota has experienced an economic boom in recent years driven by gas exploration that touched off a housing shortage there.
However, the homeownership rates in both Connecticut and Massachusetts are likely to increase in the coming quarters as more homes in the foreclosure process move through the system. The judicial court processes used in these states have been slow to expedite foreclosures, prolonging the transition of many properties from owner occupied to renter occupied.
Ken Fears is the Manager of Regional Economics and Housing Finance Policy. He focuses on regional and local market trends found in the Local Market Reports and the Market Watch Reports . He also writes on developments in the mortgage industry and foreclosures.