This represents a 4.9 percent increase in the last year alone, and a nearly 29.0 percent increase since 2005. National vacancy rates are at their lowest levels since the 1980s. U.S. homeownership declined to 63.4 percent, the lowest rate since 1967. Homeownership rates slide as wage growth lags and tighter standards for mortgage lending act as substantial barriers to entry.

1. Renter-occupied housing increases
by two million year-over-year
Residential vacancies and homeownership Q2 2015

2. 1.
2.
3.
Homeownership declines to 63.4 percent, the lowest rate since 1967
• This figure is 130 bps lower year-on-year; 30 bps lower quarter-on-quarter
• Homeownership rates slide as wage growth lags and tighter standards for
mortgage lending act as substantial barriers to entry
Gen X homeownership plummets to 58.0 percent since Q2 2014
• Gen X homeownership declines 220 bps in the past year, further highlighting
a less-elastic demand profile for rental housing
• In spite of a quarterly uptick of 20 bps, homeownership rate for millennials is
down 110 bps year-over-year
Vacancy rates are at their lowest levels since the 1980s
• The national rental housing vacancy rate was reported at 6.8 percent, 70 basis
points lower than the previous year’s second quarter reading of 7.5 percent
• Rental vacancy rates in the South saw the greatest yearly decline at 120 bps
As the U.S. homeownership rate continues to decline, renter-
occupied units increase 4.9 percent over the past year
Source: JLL Research, U.S. Census Bureau, U.S. Bureau of Labor Statistics
2

3. Demand for rentals continues to demonstrate outsized growth
3
Renter-occupied units increased by nearly 2.0 million in the last year; an increase of 27.9 percent
since 2000
68,752
74,107
75,951 74,725 74,407
33,522 33,429
35,650
39,310
42,878
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Q2 2000 Q2 2004 Q2 2008 Q2 2012 Q2 2015
Thousands
Owner-occupied Renter-occupied
8.2%
Owner-occupied
27.9%
Renter-occupied
Percent Change,
2000 - 2015
Source: JLL Research, U.S. Census Bureau

4. Renter-occupied households increased 28.9 percent since 2005
4
This increase parallels the decrease in under-35 homeownership in the same time period
Source: JLL Research, U.S. Census Bureau
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Renter-occupiedhouseholds(thousands)
Homeownership(%)
Renter-occupied households Homeownership Under-35 homeownership
43.3%
(2005 Q1)
34.8%
(2015 Q2)

5. The homeownership rate was recorded at 63.4 percent in the
second quarter, the lowest reading since 1967
5
Source: JLL Research, U.S. Census Bureau
63.3%
63.4%
60.0%
61.0%
62.0%
63.0%
64.0%
65.0%
66.0%
67.0%
68.0%
69.0%
70.0%
Homeownership(%)

6. Cities outpacing suburbs in rate of homeownership declines
6
The share of U.S. homebuyers making their first purchase dropped in 2014 to the lowest level in
three decades
Source: JLL Research, U.S. Census Bureau, National Association of Realtors (NAR)
Percent Change,
2005 - 2015
-7.6%
U.S.
-10.3%
Cities
-6.7%
Suburbs
68.6%
66.9%
63.4%
54.3%
52.0%
48.7%
75.8% 74.3%
70.7%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
U.S. Cities Suburbs

7. This shift is happening across geographies
7
Homeownership declines in excess of 1.0 percent year-over-year in in all regions
Source: JLL Research, U.S. Census Bureau
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
Homeownership(%)
U.S. Northeast Midwest South West

8. Homeownership continues to lag employment growth
8
Steady homeownership rate declines since peaking at 69.0 percent in 2004 persist despite continued
employment gains in current cycle
Source: JLL Research, U.S. Census Bureau, U.S. Bureau of Labor Statistics
132,000
134,000
136,000
138,000
140,000
142,000
144,000
146,000
148,000
150,000
60.0%
61.0%
62.0%
63.0%
64.0%
65.0%
66.0%
67.0%
68.0%
69.0%
70.0%
Employed,16yearsandover(seasonallyadjusted,thousands)
Homeownership(%)
U.S. Employed, 16 years and over - SA

9. However, despite employment growth, wage growth lags
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Yearlypercentchange
Averagehourlyearnings,totalprivate
Average Hourly Earnings Yearly Percent Change
9
As average hourly earnings struggle to maintain 2.0 percent yearly growth, homeownership lags
Source: JLL Research, Bureau of Labor Statistics

10. This is also hindered by rigid mortgage standards
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
62.0%
63.0%
64.0%
65.0%
66.0%
67.0%
68.0%
69.0%
70.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Totalmortgage-relatedissuance(inbillionsof$US)
Homeownership(%)
Total mortgage-related issuance Homeownership
10
The U.S. mortgage industry has originated 48.1 percent less than 2006 levels
Source: JLL Research, U.S. Census Bureau, Sifma

11. Home price gains exhibiting strong, consistent momentum
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Yearlypercentchange
Homeownership House Price Index
11
Consistent homeownership decline has paralleled appreciation of home prices, up in excess of 5.0
percent for five consecutive quarters
Source: JLL Research, U.S. Census Bureau, Federal Housing Finance Agency

12. Robust pricing growth concentrated in West Coast, Sunbelt
12
Denver, San Francisco, Dallas and Miami leading housing price growth
10.0%
9.7%
8.4%
8.0%
7.4% 7.4%
6.6%
6.3% 6.1%
5.1% 4.9% 4.8%
2.9%
2.2% 2.1%
1.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Averageannualhousingpriceindexgrowth,last12months
Source: JLL Research, McGraw Hill Financial

13. Millennials see small bump, gen x continues stark decline in Q2
13
Millennial homeownership saw a 20-basis-point bump in the most recent quarter, while gen x slides
another 40 bps
Source: JLL Research, U.S. Census Bureau, Urban Land Institute
-0.5
0.6
-0.7
-0.3
-0.5
-0.6
-0.8
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
U.S. Under 35 years 35 to 44 years 45 to 54 years 55 to 64 years 65 years and over
Declineinhomeownership,Q-o-Q(%)

14. Homeownership continues long-term decline across age cohorts
14
Pronounced declines of over 8.0 percent nationally over a decade, as well as throughout age
cohorts—notably from the millennial and gen x segment
Source: JLL Research, U.S. Census Bureau
-8.1
-19.1
-15.7
-8.5
-6.6
-3.7
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
U.S. Under 35 years 35 to 44 years 45 to 54 years 55 to 64 years 65 years and over
Declineinhomeownership2006-2015(%)

15. With gen X seeing eight straight quarters of declines, down 220
bps from Q2 2014
15
-350
-300
-250
-200
-150
-100
-50
0
50
100
150
200
Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Homeownershiprateannualchange(bps)
U.S. Under 35 years 35 to 44 years 45 to 54 years
70.1%
(2005 Q1)
58.0%
(2015 Q2)
Source: JLL Research, U.S. Census Bureau

16. Only 69.9 percent of those aged 45 to 54 currently own a home
16
This figure has declined from a high of 77.4 percent in the second half of 2004; those aged 55 to 64
have experienced similar declines over the same time frame
Source: JLL Research, U.S. Census Bureau,
-7.3%
55 to 64 years
-8.4%
45 to 54 years
Percent Change,
2005 - 2015
76.3%
73.6%
69.9%
81.3%
78.7%
75.4%
64.0%
66.0%
68.0%
70.0%
72.0%
74.0%
76.0%
78.0%
80.0%
82.0%
84.0%
Q2 2005 Q2 2010 Q2 2015
Homeownership(%)
45 to 54 years 55 to 64 years

17. …while millennials maintain a lagging rate of 34.8 percent
17
Endemic debt and lagging wages are two reasons keeping millennials out of homeownership, driving
a 18.7 percent decline over the past ten years
Source: JLL Research, U.S. Census Bureau
-7.6%
U.S.
-18.7%
Under-35 years
Percent Change,
2005 - 201564.7%
67.2% 68.6%
66.9%
63.4%
38.7%
40.2%
42.8%
39.0%
34.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Q2 1995 Q2 2000 Q2 2005 Q2 2010 Q2 2015
Homeownership(%)
U.S. Millennial

18. Shifts drive vacancy decline to 6.8 percent in the second quarter
6.2%
6.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Rentalvacancy(%)
18
Falling 70 bps in the last year; the rental vacancy rate is at its lowest since the 1980s
Source: JLL Research, U.S. Census Bureau

19. U.S. vacancy rates reported at 6.8 percent for rental housing
19
Year-on-year vacancies in metros are declining at the fastest rate – 8.2 percent
Source: JLL Research, U.S. Census Bureau
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Q2 2005 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015
Rentalvacancy(%)
U.S. Metros Cities

20. Tightening vacancies across regions led by Northeast, West
20
Rental vacancies have declined in these regions by at least 40 bps compared to rates from Q2 2014
Source: JLL Research, U.S. Census Bureau
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Rentalvacancy(%)
U.S. Northeast Midwest South West

21. COPYRIGHT © JONES LANG LASALLE IP, INC. 2015
For more information, please contact:
Sean Coghlan
Director
Investor Research
+1 215 988 5556
Sean.Coghlan@am.jll.com
Michael Morrone
Research Analyst, Multifamily
Investor Research
+1 312 228 2304
Michael.Morrone@am.jll.com
Or, find more multifamily real estate research at jll.com.
>>> Click here to check it out.