CUOMO SAYS HOMEOWNERSHIP RATE JUMPS TO 65.9% IN FIRST QUARTER OF 1998, AS NUMBER OF HOMEOWNERS RISES TO NEARLY 68 MILLION

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced that the U.S. homeownership rate rose to 65.9 percent in the first quarter of 1998 - up slightly from the rate of 65.7 percent in the fourth quarter of 1997.

The new Census Bureau figures show that a record 67.96 million American families now own their own homes - more than ever before in American history. The number of families owning their homes rose from 67.42 million in the last quarter of 1997.

The new 65.9 percent homeownership rate nearly equals the all-time quarterly percentage high of 66 percent set in the third quarter of 1997. The record annual high of 65.7 percent was set last year.

"If the American economy continues its strong performance we have an excellent chance of setting a new record homeownership rate this year," Cuomo said. "President Clinton's economic policies and his strategy to make the dream of homeownership a reality for more American families are working and are benefiting millions of people."

The overall increase in the homeownership rate is reflected in growing percentages of homeowners in different population groups. Here are some examples of how the homeownership rate changed for individual groups this year:

WHITES: Rose from 71.9 percent in the fourth quarter of 1997 to 72.1 percent in the first quarter of 1998.

AFRICAN AMERICANS: Rose from 45.7 percent in the fourth quarter of 1997 to 46 percent in the first quarter of 1998.

HISPANICS: Rose from 44 percent in the fourth quarter of 1997 to 44.4 percent in the first quarter of 1998.

FEMALE-HEADED HOUSEHOLDS: Rose from 50.7 percent in the fourth quarter of 1997 to 51.2 percent in the first quarter of this year.

SUBURBS: Rose from 72.6 percent in the fourth quarter of 1997 to 72.8 percent in the first quarter of 1998.

CENTRAL CITIES: Rose from 49.7 percent in the fourth quarter of 1997 to 49.9 percent in the first quarter of 1998.

"The homeownership gap between whites and minorities, between households headed by women and other households, and between suburbs and cities remains far too large," Cuomo said. "The door to homeownership must be open to more Americans. At the President's direction, we have launched new efforts to eliminate housing discrimination and lending discrimination, to help more minorities and women become homeowners, and to increase homeownership in central cities."

On a regional basis, the homeownership rate rose slightly in every region but the Northeast, where it fell slightly.

MIDWEST: Rose from 70.4 percent in the fourth quarter of 1997 to 70.6 percent in the first quarter of 1998.

SOUTH: Rose from 67.8 percent in the fourth quarter of 1997 to 68.2 percent in the first quarter of 1998.

WEST: Rose from 59.8 percent in the fourth quarter of 1997 to 60.1 percent in the first quarter of 1998.

NORTHEAST: Fell from 62.7 percent in the fourth quarter of 1997 to 62.4 percent in the first quarter of 1998.

Cuomo said an important factor contributing to the overall growth in homeownership has been the National Partners in Homeownership - a coalition of 65 national groups representing the housing industry, lenders, non-profit groups and all sectors of government working to make buying a home more affordable, faster and easier.

Since the partnership was created as part of President Clinton's National Homeownership Strategy, the overall annual homeownership rate has increased from 64 percent for 1994 to 65.7 percent in 1997, a gain of 1.7 percentage points. This translates into an increase of about 4 million more families owning homes since the end of 1994.

Activities to increase homeownership are also being carried out by 132 local homeownership partnerships established to support the national strategy. Among the activities developed by the partners are homeownership counseling sessions, homebuying fairs, and help in locating homes.