Robert R. Callis For Release 10:00 AM EDT, October 22, 1996 Alan Friedman CB96-170 (301) 763-8165 CENSUS BUREAU REPORTS ON RESIDENTIAL VACANCIES AND HOMEOWNERSHIP National vacancy rates in the third quarter 1996 were 8.0 (+/-0.3) percent in rental housing and 1.7 (+/-0.1) percent in homeowner housing, the Department of Commerce's Census Bureau announced today. The Bureau said that the rental vacancy rate was not significantly different from the rate last quarter or the rate in the third quarter 1995. However, the homeowner vacancy rate was higher than the rate last quarter and also higher than the third quarter 1995 rate. Table 1. RENTAL AND HOMEOWNER VACANCY RATES FOR THE UNITED STATES: 1980 to 1996 (in percent) Rental vacancy rates Homeowner vacancy rates First Second Third Fourth First Second Third Fourth Year quarter quarter quarter quarter quarter quarter quarter quarter . . 1996... 7.9 7.8 8.0 1.6 1.5 1.7 1995... 7.4 7.7 7.7 7.7 1.5 1.6 1.5 1.6 1994... 7.5 7.4 7.2 7.4 1.4 1.4 1.4 1.6 1993r.. 7.8 7.6 7.0 6.9 1.4 1.4 1.4 1.4 1993... 7.9 7.6 7.1 6.9 1.4 1.4 1.4 1.4 1992... 7.4 7.7 7.3 7.1 1.5 1.6 1.6 1.5 1991... 7.5 7.3 7.6 7.3 1.7 1.8 1.8 1.6 1990... 7.5 7.0 7.2 7.2 1.7 1.7 1.7 1.7 1989r.. 7.5 7.4 7.6 7.1 1.7 1.7 1.9 1.8 1989... 7.3 7.3 7.3 6.8 1.5 1.6 1.8 1.6 1988... 8.0 7.7 7.8 7.3 1.6 1.6 1.6 1.6 1987... 7.4 7.5 8.1 7.8 1.7 1.7 1.7 1.6 1986... 6.9 7.3 7.5 7.7 1.5 1.7 1.6 1.6 1985... 6.3 6.2 6.8 6.7 1.8 1.9 1.8 1.6 1984... 5.6 5.5 6.0 6.3 1.6 1.7 1.7 1.7 1983... 5.7 5.5 5.8 5.5 1.4 1.5 1.6 1.6 1982... 5.3 5.1 5.3 5.5 1.4 1.6 1.5 1.6 1981... 5.2 5.0 5.0 5.0 1.3 1.3 1.5 1.4 1980... 5.2 5.6 5.7 5.0 1.3 1.4 1.4 1.4 rRevised. For rental housing, the vacancy rate in central cities was higher than in the suburbs, but not significantly different from the rate outside Metropolitan Areas (MAs). The rental vacancy rates in central cities, in the suburbs, and outside MAs were not significantly different from one year ago. For homeowner housing, the vacancy rate in central cities was also higher than in the suburbs, but not significantly different from the rate outside MAs. The homeowner vacancy rate in the suburbs was higher than the rate one year ago, while the rates in central cities and outside MAs were not significantly different from one year ago. Among regions, the rental vacancy rate remained highest in the South (8.7 percent). The rental vacancy rates in the Northeast, Midwest, and West were not significantly different from each other. The rental vacancy rates in each region did not differ significantly from one year ago. The homeowner vacancy rates in the South and West were higher than in the Midwest, but not significantly different from the rate in the Northeast. The homeowner vacancy rates in each region did not differ significantly from one year ago. Table 2. RENTAL AND HOMEOWNER VACANCY RATES BY REGION: THIRD QUARTER 1996 AND 1995 (in percent) Rental vacancy rates Homeowner vacancy rates Area 3rd 3rd Std err Standard 3rd 3rd Std err Standard Qtr Qtr on 1996 error on Qtr Qtr on 1996 error on 1996 1995 rate differ- 1996 1995 rate differ- ence ence . . United States....... 8.0 7.7 0.2 0.3 1.7 1.5 0.1 0.1 Inside MAs........ 7.9 7.7 0.2 0.3 1.6 1.5 0.1 0.1 In central cities 8.7 8.6 0.3 0.4 1.8 2.0 0.1 0.2 Not in central cities (suburbs). 7.1 6.6 0.3 0.4 1.6 1.2 0.1 0.1 Outside MAs...... 8.4 7.9 0.5 0.6 1.7 1.6 0.1 0.2 Northeast......... 7.8 7.1 0.4 0.6 1.6 1.5 0.1 0.2 Midwest........... 7.8 7.4 0.4 0.6 1.4 1.2 0.1 0.1 South............. 8.7 8.2 0.3 0.4 1.8 1.6 0.1 0.1 West............. 7.4 7.9 0.3 0.5 1.8 1.6 0.1 0.2 There were an estimated 114.5 million housing units in the United States in the third quarter 1996. Approximately 101.1 million were occupied, 66.3 million by owners and 34.8 million by renters. The number of owner-occupied units was higher than one year ago, while the number of renter-occupied units was not significantly different from a year ago. Of the 13.4 million vacant housing units, 10.2 million were for year- round use, while the remaining 3.2 million were intended for seasonal use. Approximately 3.1 million of the year-round vacant units were for rent, 1.1 million were for sale only, and the remaining 6.0 million were vacant for a variety of reasons. There was an increase in the number of vacant for-sale-only units and those vacant for a variety of reasons from the third quarter 1995, while the number of vacant for-rent and seasonal vacant units was not significantly different from one year ago. Table 3. ESTIMATES OF THE TOTAL HOUSING INVENTORY FOR THE UNITED STATES: THIRD QUARTER 1996 and 1995 (Numbers in thousands) Type Standard Third Third error on Standard Percent quarter quarter 1996 error on of total 1996 1995 Estimate difference (1996) All housing units.....114,534 112,530 238 331 100 Occupied............101,120 99,874 246 342 88 Owner............. 66,288 64,885 240 333 58 Renter............ 34,832 34,989 197 274 30 Vacant.............. 13,414 12,656 131 180 12 Year-round........ 10,197 9,557 116 158 9 For rent........ 3,080 2,966 65 89 3 For sale only... 1,119 987 39 53 1 Other........... 5,998 5,604 90 123 5 Seasonal.......... 3,217 3,099 66 91 3 During the third quarter 1996, the homeownership rate was 65.6 (+/-0.3) percent. The homeownership rate was higher than a year ago, but not significantly different from the rate last quarter. Table 4. HOMEOWNERSHIP RATES FOR THE UNITED STATES: 1980 to 1996 (in percent) Homeownership Rates1 Year First Second Third Fourth quarter quarter quarter quarter . 1996................ 65.1 65.4 65.6 1995................ 64.2 64.7 65.0 65.1 1994................ 63.8 63.8 64.1 64.2 1993r............... 63.7 63.9 64.2 64.2 1993................ 64.2 64.4 64.7 64.6 1992................ 64.0 63.9 64.3 64.4 1991................ 63.9 63.9 64.2 64.2 1990................ 64.0 63.7 64.0 64.1 1989r............... 63.9 63.8 64.1 63.8 1989................ 63.9 63.9 64.0 63.8 1988................ 63.7 63.7 64.0 63.8 1987................ 63.8 63.8 64.2 64.1 1986................ 63.6 63.8 63.8 63.9 1985................ 64.1 64.1 63.9 63.5 1984................ 64.6 64.6 64.6 64.1 1983................ 64.7 64.7 64.8 64.4 1982................ 64.8 64.9 64.9 64.5 1981................ 65.6 65.3 65.6 65.2 1980................ 65.5 65.5 65.8 65.5 1Standard errors for quarterly homeownership rates for the United States generally are 0.2 percent. rRevised. Homeownership rates in the third quarter 1996 were highest in the Midwest (70.7 percent) and lowest in the West (59.2 percent). The homeownership rate in the South was higher than the third quarter 1995 rate, while rates in the Northeast, Midwest, and West were not statistically different from a year ago. Table 5. HOMEOWNERSHIP RATES FOR THE UNITED STATES AND REGIONS: 1994 to 1996 (in percent) Homeownership Rates2 Year/Quarter U.S. total Northeast Midwest South West 1996 3rd Quarter 65.6 62.8 70.7 67.5 59.2 2nd Quarter 65.4 62.3 70.5 67.2 59.8 1st Quarter 65.1 61.4 70.4 67.5 58.9 1995 4th Quarter 65.1 61.6 70.1 67.5 59.0 3rd Quarter 65.0 62.2 70.1 66.6 59.1 2nd Quarter 64.7 62.3 68.5 66.5 59.8 1st Quarter 64.2 61.9 67.9 66.1 58.9 1994 4th Quarter 64.2 61.4 68.6 65.7 59.6 3rd Quarter 64.1 61.4 67.9 66.0 59.0 2nd Quarter 63.8 61.3 67.5 65.2 59.7 1st Quarter 63.8 61.7 66.8 65.6 59.5 2Standard errors for quarterly homeownership rates by region generally are 0.4 percent. In the third quarter 1996, homeownership rates by age of householder ranged from 39.0 percent for householders less than 35 years old to 79.7 percent for householders 55 to 64 years old. The homeownership rate for householders 35 to 44 years old was higher than in the third quarter 1995, while rates for other age groups showed no significant change from a year ago. Table 6. HOMEOWNERSHIP RATES BY AGE OF HOUSEHOLDER: 1994 to 1996 (in percent) Homeownership Rates3 Year/Quarter U.S. Less than 35 to 44 45 to 54 55 to 64 65 years total 35 years years years years and over 1996 3rd Quarter 65.6 39.0 66.3 75.9 79.7 78.6 2nd Quarter 65.4 39.3 65.5 75.5 80.0 78.9 1st Quarter 65.1 38.8 64.6 75.5 80.2 79.1 1995 4th Quarter 65.1 39.1 65.5 75.2 79.5 78.7 3rd Quarter 65.0 39.1 65.4 75.4 79.3 78.1 2nd Quarter 64.7 38.7 65.1 75.2 79.9 78.1 1st Quarter 64.2 37.7 64.9 74.9 79.4 77.5 1994 4th Quarter 64.2 38.0 64.7 74.9 79.2 77.7 3rd Quarter 64.1 37.5 64.3 75.5 79.4 77.2 2nd Quarter 63.8 36.8 64.6 75.2 79.1 77.2 1st Quarter 63.8 37.1 64.4 75.0 79.3 77.4 3Standard errors for quarterly homeownership rates by age of householder generally are 0.4 percent. In the third quarter 1996, the homeownership rate was highest for White Non-Hispanic householders at 71.8 percent. The homeownership rates for White Non-Hispanic householders, Black householders, and Other race householders were higher than in the third quarter 1995, while the rate for Hispanics showed no significant change. Table 7. HOMEOWNERSHIP RATES BY RACE AND ETHNICITY OF HOUSEHOLDER: 1994 to 1996 (in percent) Homeownership Rates4 White Other Year/Quarter U.S. White, Non- Black, Race, Hispanic, total total Hispanic total total total 1996 3rd Quarter 65.6 69.2 71.8 44.5 51.5 43.5 2nd Quarter 65.4 69.2 71.7 43.7 50.0 43.9 1st Quarter 65.1 68.7 71.4 43.8 50.9 41.4 1995 4th Quarter 65.1 68.8 71.2 44.3 48.4 41.1 3rd Quarter 65.0 69.0 71.1 43.0 46.5 42.5 2nd Quarter 64.7 68.7 70.9 42.2 46.7 42.8 1st Quarter 64.2 68.2 70.4 41.2 47.2 41.8 1994 4th Quarter 64.2 68.0 70.2 42.6 47.6 42.2 3rd Quarter 64.1 67.8 70.0 42.7 46.9 41.4 2nd Quarter 63.8 67.6 69.9 41.8 46.3 41.1 1st Quarter 63.8 67.4 69.8 42.1 50.1 40.3 4Standard errors for quarterly homeownership rates by race and ethnicity of householder generally are 0.2 percent for White total and White Non- Hispanic householders, 0.5 for Black householders, 1.0 percent for Other Race householders, and 0.7 percent for Hispanic householders. The homeownership rate for households with incomes less than the median family income in the third quarter 1996 was 49.4 percent, compared to 80.5 percent for households with incomes greater than or equal to the median family income. The rate for higher-income households was higher than in the third quarter 1995, while the rate for lower-income households was not statistically different from last year. Table 8. HOMEOWNERSHIP RATES BY FAMILY INCOME: 1994 to 1996 (in percent) Homeownership Rates5 U.S. total Households with Households with Year/Quarter family income greater family income or equal to median less than median family income6 family income6 1996 3rd Quarter 65.6 80.5 49.4 2nd Quarter 65.4 80.3 49.2 1st Quarter 65.1 79.7 49.4 1995 4th Quarter 65.1 79.8 49.4 3rd Quarter 65.0 79.6 49.0 2nd Quarter 64.7 79.5 48.6 1st Quarter 64.2 79.1 48.1 1994 4th Quarter 64.2 78.8 48.6 3rd Quarter 64.1 78.3 48.9 2nd Quarter 63.8 78.4 48.0 1st Quarter 63.8 78.5 48.1 5Standard errors for quarterly homeownership rates by family income generally are 0.3 percent. 6Based on families or primary individuals reporting income. Note: This press release along with more detailed data is available on the Internet. Our Internet address is: https://www.census.gov/ftp/pub/hhes/www/hvs.html The data in this release are based on a sample survey and therefore are subject to both sampling and nonsampling error. Sampling error is a result of not surveying the entire population. Nonsampling error occurs because accurate information cannot always be obtained. The standard errors provided in the tables are primarily measures of sampling error. Standard errors are used to: 1) measure the accuracy of the survey estimates, and 2) draw inferences from the survey data. For example, the standard error on the estimated rental vacancy rate of 8.0 percent is 0.2 percentage points. Consequently, the 90 percent confidence interval as shown by these data is from 7.7 to 8.3; i.e., the interval 8.0 + (1.6 x 0.2) percentage points. Thus, one can say with about 90 percent confidence that the average rental vacancy rate derived from all possible samples is included in this confidence interval. Statements about differences are made only when the 90 percent confidence interval on the estimated difference does not include zero.