UNITED STATES DEPARTMENT OF COMMERCE NEWS WASHINGTON, D.C. 20230 Robert R. Callis For Release 10:00 AM EDT, January 23, 1997 Alan Friedman CB96-05 (301) 763-8165 CENSUS BUREAU REPORTS ON RESIDENTIAL VACANCIES AND HOMEOWNERSHIP National vacancy rates in the fourth quarter 1996 were 7.7 (+/- 0.3) percent in rental housing and 1.7 percent (+/- 0.1) percent in homeowner housing, the Department of Commerce's Census Bureau announced today. The Bureau said that neither the rental vacancy rate nor the homeowner vacancy rate was significantly different from the rate last quarter or the rate in the fourth quarter 1995. 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 7.7 1.6 1.5 1.7 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 was higher in central cities and outside Metropolitan Areas (MAs) (8.3 percent each) than in the suburbs (6.8 percent). 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 was highest in central cities (2.1 percent). The homeowner vacancy rates in the suburbs (1.5 percent) and outside MAs (1.7 percent) were not significantly different from each other. The homeowner vacancy rate in the suburbs was higher than the rate one year ago, while rates in central cities and outside MAs did not change significantly. Among regions, the rental vacancy rate in the South (8.5 percent) was higher than rates in the Northeast and West (about 6.9 percent), but not significantly different from the Midwest (8.2 percent). The rental vacancy rate in the West was lower than a year ago, while rates in the Northeast, Midwest, and South were not significantly different from one year ago. The homeowner vacancy rate was lowest in the Midwest (1.4 percent). Homeowner vacancy rates in the Northeast, South, and West were each at about 1.8 percent. The homeowner vacancy rates in each region showed no significant change from one year ago. Table 2. Rental and Homeowner Vacancy Rates By Region: Fourth Quarter 1996 and 1995 (in percent) Rental vacancy rates Homeowner vacancy rates Area 4th 4th Std err Standard 4th 4th 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....... 7.7 7.7 0.2 0.2 1.7 1.6 0.1 0.1 Inside MAs........ 7.6 7.7 0.2 0.3 1.7 1.5 0.1 0.1 In central cities 8.3 8.4 0.3 0.4 2.1 2.1 0.1 0.2 Not in central cities (suburbs). 6.8 6.9 0.3 0.4 1.5 1.3 0.1 0.1 Outside MAs...... 8.3 8.0 0.5 0.7 1.7 1.7 0.1 0.2 Northeast......... 7.1 6.9 0.4 0.5 1.8 1.5 0.2 0.2 Midwest........... 8.2 7.6 0.4 0.6 1.4 1.3 0.1 0.1 South............. 8.5 8.5 0.3 0.4 1.8 1.7 0.1 0.1 West............. 6.7 7.5 0.3 0.5 1.9 1.8 0.1 0.2 There were an estimated 114.6 million housing units in the United States in the fourth quarter 1996. Approximately 101.3 million were occupied, 66.3 million by owners and 35.0 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 13.3 million vacant housing units, 10.0 million were for year-round use. Approximately 3.0 million of the year-round vacant units were for-rent, 1.1 million were for-sale-only, and the remaining 5.9 million were vacant for a variety of reasons. There was an increase in the number of vacant for-sale-only, other vacant, and seasonally vacant units, while the number of for-rent units did not change significantly from one year ago. Table 3. Estimates of the Total Housing Inventory for the United States: Fourth Quarter 1996 and 1995 (Numbers in Thousands) Standard Type Fourth Fourth error on Standard Percent quarter quarter 1996 error on of total 1996 1995 Estimate difference (1996) . All housing units.....114,555 112,987 238 331 100 Occupied............101,264 100,363 246 342 88 Owner............. 66,277 65,355 240 333 58 Renter............ 34,987 35,008 198 274 31 Vacant.............. 13,291 12,624 131 179 12 Year-round........ 9,979 9,529 114 157 9 For rent........ 2,950 2,966 63 88 3 For sale only... 1,146 1,050 40 54 1 Other........... 5,883 5,513 89 122 5 Seasonal.......... 3,312 3,095 67 92 3 During the fourth quarter 1996, the homeownership rate was 65.4 percent (+/-0.3) percent. The homeownership rate was not significantly different from the rate last quarter or the rate one year ago. 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 65.4 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 fourth quarter 1996 were highest in the Midwest (70.8 percent) and lowest in the West (58.9 percent). The homeownership rates in each region showed no significant change from the fourth quarter 1995. 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 . Fourth Quarter 65.4 62.3 70.8 67.6 58.9 Third Quarter 65.6 62.8 70.7 67.5 59.2 Second Quarter 65.4 62.3 70.5 67.2 59.8 First Quarter 65.1 61.4 70.4 67.5 58.9 1995 Fourth Quarter 65.1 61.6 70.1 67.5 59.0 Third Quarter 65.0 62.2 70.1 66.6 59.1 Second Quarter 64.7 62.3 68.5 66.5 59.8 First Quarter 64.2 61.9 67.9 66.1 58.9 1994 Fourth Quarter 64.2 61.4 68.6 65.7 59.6 Third Quarter 64.1 61.4 67.9 66.0 59.0 Second Quarter 63.8 61.3 67.5 65.2 59.7 First Quarter 63.8 61.7 66.8 65.6 59.5 2Standard errors for quarterly homeownership rates by region generally are 0.4 percent. Homeownership rates by age of householder ranged from 39.1 percent for householders less than 35 years old to 80.1 percent for householders 55 to 64 years old in the fourth quarter 1996. The homeownership rates for each of the age categories 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 . Fourth Quarter 65.4 39.1 65.5 75.6 80.1 79.2 Third Quarter 65.6 39.0 66.3 75.9 79.7 78.6 Second Quarter 65.4 39.3 65.5 75.5 80.0 78.9 First Quarter 65.1 38.8 64.6 75.5 80.2 79.1 1995 Fourth Quarter 65.1 39.1 65.5 75.2 79.5 78.7 Third Quarter 65.0 39.1 65.4 75.4 79.3 78.1 Second Quarter 64.7 38.7 65.1 75.2 79.9 78.1 First Quarter 64.2 37.7 64.9 74.9 79.4 77.5 1994 Fourth Quarter 64.2 38.0 64.7 74.9 79.2 77.7 Third Quarter 64.1 37.5 64.3 75.5 79.4 77.2 Second Quarter 63.8 36.8 64.6 75.2 79.1 77.2 First 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. The homeownership rate in the fourth quarter 1996 was highest for White non-Hispanic householders at 71.8 percent. The homeownership rates for White non-Hispanic and Other race householders were higher than in the fourth quarter 1995. Homeownership rates for White, Black, and Hispanic householders showed no significant difference from a year ago. 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 . Fourth Quarter 65.4 69.1 71.8 44.4 51.4 42.3 Third Quarter 65.6 69.2 71.8 44.5 51.5 43.5 Second Quarter 65.4 69.2 71.7 43.7 50.0 43.9 First Quarter 65.1 68.7 71.4 43.8 50.9 41.4 1995 Fourth Quarter 65.1 68.8 71.2 44.3 48.4 41.1 Third Quarter 65.0 69.0 71.1 43.0 46.5 42.5 Second Quarter 64.7 68.7 70.9 42.2 46.7 42.8 First Quarter 64.2 68.2 70.4 41.2 47.2 41.8 1994 Fourth Quarter 64.2 68.0 70.2 42.6 47.6 42.2 Third Quarter 64.1 67.8 70.0 42.7 46.9 41.4 Second Quarter 63.8 67.6 69.9 41.8 46.3 41.1 First 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 fourth quarter 1996 was 49.8 percent, compared to 80.1 percent for households with incomes greater than or equal to the median family income. These homeownership rates were not statistically different from fourth quarter 1995 rates. 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 than or equal to median less than median family income6 family income6 1996 . Fourth Quarter 65.4 80.1 49.8 Third Quarter 65.6 80.5 49.4 Second Quarter 65.4 80.3 49.2 First Quarter 65.1 79.7 49.4 1995 Fourth Quarter 65.1 79.8 49.4 Third Quarter 65.0 79.6 49.0 Second Quarter 64.7 79.5 48.6 First Quarter 64.2 79.1 48.1 1994 Fourth Quarter 64.2 78.8 48.6 Third Quarter 64.1 78.3 48.9 Second Quarter 63.8 78.4 48.0 First 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 are available on the Internet. Our Internet address is: http://www.census.gov/ftp/pub/hhes/www/hvs.html The estimates in this release are based on a sample survey and therefore are subject to both sampling and non-sampling error. Sampling error is a result of not surveying the entire population. Non-sampling 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 7.7 percent is 0.2 percentage points. Consequently, the 90-percent confidence interval as shown by these data is from 7.4 to 8.0; i.e., the interval 7.7 +/- (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.