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Booming home sales fail to raise homeownership rate

Despite the exodus from cities and booming home sales last year, the homeownership rate in the third quarter was virtually unchanged from its level prior to the arrival of COVID-19. And with soaring house prices and tight credit conditions shutting out first-time buyers, we doubt it will rise much over the next couple of years. But there was a substantial increase in number of rental households in the third quarter, and we expect a further rise as cities reopen. That will keep the rental vacancy rate close to record lows, with the supply of larger single-family rental homes and multifamily units set to remain particularly tight.

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