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HUD Archives: News Releases
| HUD No. 96-11 |
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FOR RELEASE: |
| Aylin Gonen (202)708-0685 ext. 119 |
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Thursday, |
| Bill Connelly (202)708-0685 ext. 115 |
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February 8, 1996 |
HUD Announces Sharpest Rise in Homeownership Rate in at least 30 Years
Highest Homeownership Rate since 1981;
Over 1.4 Million New Homeowners Added in 1995
WASHINGTON--HUD Secretary Henry G. Cisneros said today that
the Clinton Administration's economic policies, lower interest
rates, and a public-private partnership with the housing industry
helped more than 1.4 million more Americans become homeowners in
1995.
The national homeownership rate rose to 65.1 percent in the
final quarter of 1995, the highest rate since 1981, from a rate
of 64.2 percent at the end of 1994. The gain of nearly 1 percent
represents the sharpest increase in the rate in at least 30
years.
Cisneros said this surge in homeownership bodes well for the
success of President Clinton's National Homeownership Strategy,
which is seeking to add up to 8 million more families to the
homeownership rolls by the end of the year 2000.
"The dramatic increase in the homeownership rate is evidence
of a strong economy and the desire for families to invest their
hard earned money in a home," said Cisneros.
Cisneros said that the percentage changes from the 4th
quarter of 1994 compared to the 4th quarter of 1995 were among
the most dramatic. The homeownership rate for minorities rose
from 43.7 percent to 44.3 percent. For households under the age
of 35, the number of homeowners has increased from 57.1 percent
to 57.9 percent. For households with less than median family
income the homeownership rate rose from 48.6 percent to 49.4
percent.
President Clinton launched the National Homeownership
Strategy in November, 1994. He directed Cisneros to form the
"National Partners in Homeownership," in which 56 major housing
and finance industry groups are now working with government and
nonprofit organizations to reduce barriers to homeownership.
On June 5, 1995, President Clinton, Vice President Gore and
Secretary Cisneros were joined by the Partners at the White House
to announce a plan recommending 100 proposed collaborative
actions to increase homeownership. The goals of the strategy
include:
- Cutting the costs of homeownership (including financing,
production and transaction costs and fees), making financing
more available, and simplifying the homebuying process.
- Opening markets for homeownership to increase choice and
remove discriminatory and regulatory barriers, making homes,
financing, and insurance available and affordable for more
households.
- Encouraging homeownership for millions of additional
families through education and counseling, information
technology, communications media, and community involvement.
Considerable Work Implementing the National Homeownership Strategy Is under Way:
Housing production costs are being reduced
- A new initiative involving the National Association of
Home Builders, HUD, Manufactured Housing Institute,
Fannie Mae and many other Partnership members will
accelerate technology improvements in the construction
of single family homes.
- The American Planning Association, U.S Conference of
Mayors, HUD, and others are developing "Growing Smart",
a model for new enabling laws which state and local
governments can use to reform zoning requirements.
- A national summit is being organized to explore the
wider use of manufactured housing as an affordable
alternative. The meeting will include more than 20
Partnership organizations, state and local planners,
and manufactured housing producers.
Acquiring a mortgage will become easier
- Downpayment assistance is being provided and increased
savings encouraged through aggressive new efforts by
the Federal Home Loan Bank System, HUD, Neighborhood
Reinvestment Corporation and other partners.
- Mortgage credit in rural communities is being enhanced
through innovative new uses of the USDA's Rural Housing
Service 502 Program with Fannie Mae, a new initiative
called Rural LISC, involving the Local Initiatives
Support Corporation (LISC) and other partners, and a
new Partnership demonstration led by Habitat for
Humanity International.
- More effective homeownership counseling for first-time
home buyers is now available because of recent efforts
by Fannie Mae, Freddie Mac, the National Revinvestment
Corporation, American Bankers Association, National
Foundation for Consumer Credit, Mortgage Bankers
Association and HUD.
Local homeownership efforts are being supported
- The Washington, D.C.-based Partnership will seek to
strengthen local homeownership activities. The
Partnership has started a campaign to provide technical
support to local homeownership partnerships.
- Plans for new publications, homeownership training
opportunities, outreach campaigns and an internet site
are being developed to help local homeownership
providers do their jobs more effectively.
Content Archived: April 9, 2010
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