Homeownership rates fall to 66% in worst housing downturn since the Great Depression

The U.S. Census Bureau reported Tuesday that the nation's homeownership rate fell to 66% in the fourth quarter, continuing a seven-year drop from a fourth-quarter peak of 69.2% in 2004.

At the same time, U.S. home prices fell 1.3% in November from October and were 3.7% below 2010 levels, the Standard & Poor's/Case-Shiller home price index indicates. Falling homeownership — and prices — reflect the worst housing downturn since the Great Depression.

And while there are signs that the housing industry's downturn may at least be nearing a bottom [that's a laugh, what signs!], the impact of the collapse will be evident for years to come, economists say. As of November, average U.S. home prices were back to mid-2003 levels, S&P says.

Many economists expect home prices to continue to fall this year and maybe into next year before stabilizing and then showing little or no appreciation for some time. "The trend is down, and there are few, if any, signs in the numbers that a turning point is close at hand," says David Blitzer, chairman of S&P's index committee. More...