How much lower will the homeownership rate get?

Over the next few years, it’s plausible that tight credit, subdued confidence and many more foreclosures will drive the homeownership rate down to 64%, from 65.4% now. Over a longer horizon, the case for further falls in the homeownership rate hinges on whether there has been a permanent shift in the tastes and preferences of American households away from owner-occupation. Hard evidence is thin on the ground, but that doesn’t appear to have happened.