Census Reports Increase in Vacant Homes for Sale and Rent

The number of vacant homes for rent jumped to 4.59 million in the third quarter, up 16% from a year ago and up nearly 190,000 units from the second quarter, according to the Census Bureau. The rising number of rentals reflects a slow sales market that forces speculators to rent properties and families moving up to rent their previous homes. It also reflects a glut of condominiums. "Condos keep coming on the market," said Bernard Markstein, director of economic forecasting at the National Association of Home Builders. The Census Bureau reported that the number of vacant homes for sale rose to 1.99 million in the third quarter from 1.92 million in the second quarter. The number of vacant homes on the market had dropped by 14% during the first half of the year. The slight increase occurred during a period of rising sales with homebuilders continuing to reduce their inventories of unsold houses. Mr. Markstein said the increase reflects more foreclosed homes coming on the market, as well as condo units. The Census Bureau also reported that the U.S. homeownership rate edged up to 67.6% in the third quarter, from 67.4% in the previous quarter. The homeownership rate was 67.9% in the third quarter of 2008 and it peaked at 69.2% in the second quarter of 2004. A percentage point decline in the homeownership rate represents 1.1 million owner-occupants that lost their homes.