Despite the exodus from cities and booming home sales last year, the homeownership rate in the third quarter was virtually unchanged from its level prior to the arrival of COVID-19. And with soaring house prices and tight credit conditions shutting out first-time buyers, we doubt it will rise much over the next couple of years. But there was a substantial increase in number of rental households in the third quarter, and we expect a further rise as cities reopen. That will keep the rental vacancy rate close to record lows, with the supply of larger single-family rental homes and multifamily units set to remain particularly tight.
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