2016 ROI Fourth Quarter Edition with Q & A HIS Capital Group Edition | Page 18

The bullish sentiment for housing portrayed in the prior housing graphics is somewhat doused by the
Census Bureau’s Vacant Homes for Sales measurement. This measure is trending downward, although
still relatively high. Over the past decade, a new normal may have emerge for vacant homes in the U.S.

Another interesting observation on the state of housing in the U.S. is rent, or in the BLS’ parlance, Owners’
Equivalence of Rent (i.e. how much a homeowner thinks he could rent his home for). Growing at a 3.4%
year-over-year clip, the rent growth is approaching the prior growth peaks of 4.6% (2002) and 4.3%
(2006). Still some room for expansion as confidence gains strength.

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