Homeownership Hits Record High
of 66.8 Percent
By Joanne Morrison
WASHINGTON, Oct. 23, 1998 (Reuters) - The homeownership
rate soared to a record of 66.8 percent in the third quarter this
year, driven by a strong economy, Housing Secretary Andrew
Cuomo said Thursday.
''Our powerful economy is driving the homeownership rate out of
the ballpark,'' Cuomo said, adding that there are 7.4 million more
families owning homes than when President Clinton first took
office.
The number of families owning their own homes hit 69.1 million in
the third quarter, the highest number in history and an increase
from 68.3 million in the second quarter.
The homeownership rate stood at 63.7 percent at the beginning of
the president's first term.
Cuomo predicted that 1998 is virtually guaranteed to post the
highest annual rate ever.
The rate, which measures the percentage of families who own the
homes in which they live, was up from 66 percent in the second
quarter of this year.
On a regional basis, the rate rose in every part of the country, the
department said. But a huge gap between homeownership among
whites and minorities remained.
Among the nation's white population, homeownership hit 73.1
percent for the the third quarter, up from 72.5 percent. That
compares with the 46.8 percent ownership rate among blacks, up
from 45.3 percent in the second quarter, and 44.9 percent among
Hispanics, up from 43.9 percent.
''One of our top priorities remains reducing the homeownership
gap that's dividing whites from minorities and suburbanites from
city residents,'' Cuomo said.
With an increased fair housing budget to $40 million from $30
million, the Department will be able to step up its efforts against
housing discrimination, he said.
In addition, legislation signed into law by Clinton Wednesday that
raises the limit on home mortgages insured by the Federal Housing
Administration (FHA) will also contribute to a further rise in
homeownership.
Until now FHA insurance could cover mortgage loans ranging
from $86,317 in low-cost housing areas to $170,362 in high-cost
areas.
The new law raises those loan limits substantially -- ranging from
$109,032 to $197,621.
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