This speaks to the difficult situation face by renters who would like to buy a home.
Home ownership rates have been on a steady decline and are now near a 48-year low (see the chart below). Adding to the difficult situation is that real household incomes have dropped 9% while rents have increased 7% over the last 13 years. The poor home ownership situation will likely persist, since nearly half of today’s renters spend more than 30% of their pre-tax income on housing.
