U.S. Housing Market Posts Strong Second Quarter

The Nation's housing market had a robust second quarter in 2001 with affordability, production, and marketing at strong levels, according to the latest issue of U.S. Housing Market Conditions. This quarterly report from HUD's Office of Policy Development and Research draws on a wide range of public and industry sources to present the latest essential data on the U.S. housing market, including the following:

• Housing affordability remained favorable in the second quarter owing in large part to historically low mortgage interest rates. The homeownership rate returned to the record level of 67.7 percent, up 0.5 percentage point from the second quarter of 2000.

• Both new home and existing home sales recorded strong second quarters. New home sales were up over last year. Existing home sales, at a seasonally adjusted annual rate (SAAR) of 5.3 million, were up from the second quarter of 2000.

• Housing production remained strong in the second quarter. Both permits and starts were at about 1.6 million (SAAR) per year. Housing permits were up 2 percentage points from the second quarter of 2000.

• Multifamily housing markets showed mixed results during the second quarter. Levels of production remained high, but permits and starts posted declines, and the apartment vacancy rate increased.

This issue of U.S. Housing Market Conditions also examines recently released data on housing and homeownership from the 2000 census and provides comparisons with 1990 census data. Between 1990 and 2000, the Nation's housing stock increased 13.3 percent, from 99.2 million to 112.3 million units. In 2000 the U.S. homeownership rate was 66.2 percent, up 2 percent from 1990.

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