Homeownership rates have dropped to historic lows, while at the same time the cost to rent homes has risen sharply, according to a new Harvard University report.
The U.S. homeownership rate fell to 64.5% in 2014, which "erases nearly all of the increase from the previous two decades," Chris Herbert, managing director of Harvard's Joint Center for Housing Studies,
Single-family home construction has fallen to near-historic lows and the sales of existing homes has slowed, the study said.
While these factors have pushed more consumers into the rental market, monthly rental payments have risen and incomes remain below prerecession levels. Monthly rental rates rose 3.2% in 2014, twice the pace of overall inflation.
The result is a heavier cost burden on many renters, the study's authors said.
"While affordability for moderate-income renters is hitting some cities and regions harder than others, an acute shortage of affordable housing for lowest-income renters is being felt everywhere," Herbert said.
