A thriving economy, increased housing affordability, and low mortgage interest rates helped the Nation break or challenge several housing records in 1997, according to the February 1998 issue of U.S. Housing Market Conditions. The annual homeownership rate hit an all-time high of 65.7 percent, breaking the previous record of 65.6 percent set in 1980. Additionally, housing permits and starts finished the year with levels that were the third highest in the past decade.

"1997 was a year of rising homeownership and strong housing starts," said HUD Secretary Andrew Cuomo. "Homebuyers and the housing industry have benefited from President Clinton's economic policies, which are holding down interest rates, increasing employment, boosting consumer confidence, and balancing the Federal budget."

The report also found that sales of existing homes totaled 4,215,000, the highest annual rate in U.S. history. New home sales totaled 800,000, making 1997 the third best year on record. All regions of the country ended the year with healthy economies and robust housing markets.

The February 1998 issue highlights the following regional trends:

• In the New England, New York/New Jersey, and Mid-Atlantic regions, sales of existing homes in 1997 through the fourth quarter exceeded last year's strong performance. New England led the rise in existing homes sales, up a robust 12 percent. Highlighted metropolitan areas include: Waterbury, Connecticut; Middlesex-Somerset-Hunterdon, New Jersey; and Philadelphia, Pennsylvania.

• The Southeast/Caribbean experienced a robust employment growth rate of 2.4 percent. South Carolina experienced the highest rate of growth, with an increase of 5.1 percent. The report examined Atlanta, Georgia, in detail.

• In the Midwest unemployment rates reached historic lows, and existing home sales were up 2 percent to 868,600 homes, a record for the 1990s. Economic and housing market conditions in Indianapolis, Indiana, were profiled.

• The Great Plains experienced strong home sales while the Rocky Mountain region had a booming apartment market. Lincoln, Nebraska, and Grand Forks, North Dakota, were spotlighted in the Great Plains and Rocky Mountain regions.

• The Southwest and Pacific regions continued to experience strong increases in multifamily housing construction. For example, improving conditions in California rental markets encouraged builders to increase multifamily activity by 16 percent in 1997. This report highlighted San Antonio, Texas, and Phoenix, Arizona.

• The largest employment gains occurred in the Northwest, which had growth rates near 3 percent. Central Puget Sound, Washington, was featured for this region.

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