Homeownership in Los Angeles and Orange counties: Worst in U.S.
Homeownership in Los Angeles and Orange counties fell back from a post-recession high to the nation’s worst in the second quarter.
One bad quarter is not a significantly ominous signal, but the falling ownership levels along with a rising number of empty homes suggests local house hunters are not jumping on 2018’s noteworthy surge in homes listed for sale.
New census stats show 48.8 percent of households in Los Angeles and Orange counties lived in homes they owned in the second quarter, the lowest rate among the 75 largest major metropolitan areas tracked. This is down from 51.9 percent in the previous quarter — L.A.-O.C.’s highest since 2008 but still fourth lowest in the nation.
The slim bit of good news is that ownership is up from 48.3 percent a year ago, when Los Angeles and Orange counties ranked second worst. Last time L.A.-O.C. was worst? 2016’s fourth quarter.
Considering all the talk about a shortage of housing in Southern California, it’s curious that an increased supply of shopper options has translated to home sales in the region in 2018 running at a four-year low.
Note: the number of empty homes rose sharply in the spring. L.A.-O.C.’s vacancy rate for homes previously owned more than doubled to 1.4 percent in the second quarter. That’s up from 0.6 percent in the first quarter and 1.2 percent a year ago — and it’s the highest vacancy level since 2013.
The regional springtime dip in homeownership left rates just above year-ago levels.
In Riverside and San Bernardino counties, 60.1 percent of households lived in homes they owned in the second quarter, the 17th lowest rate in the nation. The second quarter ownership level compares with 61.2 percent in the previous quarter — the No. 26 low — and 58.4 percent a year earlier when the Inland Empire ranked No. 19 worst.
Empty housing was up, too, in the Inland Empire: 1.3 percent of homes were vacant in the sales process this spring, up from 1 percent in the first quarter but down from 2.9 percent a year ago.
Across California, ownership ran 54.3 percent in the second quarter, the third-lowest rate among the states. It was below 55.2 percent in the previous quarter — also No. 3 low — but it’s more than the 53.8 percent of a year earlier when California ranked No. 4 worst.
Nationally, the ownership rate rose a smidge: 64.3 percent in the second quarter vs. 64.2 percent in the previous quarter and 63.7 percent a year earlier.
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