Garnering much less attention than last week’s GDP report were the housing figures.

In particular, we received figures on homeownership, vacancies, housing stock, and a host of other relevant indications on the state of the American housing market.

Perhaps the saddest figure of the bunch is the Homeownership Rate. Often referred to as the American Dream , homeownership appears to be slipping out of reach for many (mostly) Millennials .

Since peaking at 69.2% in 2004, the Homeownership Rate has precipitously declined to a recent low of 63.5%.

Now, there are, of course, multiple ways to read the drop in the Homeownership Rate.

Perhaps the drop in homeownership isn’t due to lack of financial resources. Perhaps Millennials simply don’t want to be tied down to a home. Perhaps they’d rather spend their money on traveling and eating out, instead of possessions like homes and cars.

Perhaps.

But, probably not.

Millennials are Soon to Be the Largest Labor Force Participating Group

First, Millennials are soon to be the largest demographic group in the labor force (first chart below). With such shifts in the makeup of the labor force, Millennials should be demanding new homes.

Instead, what we’re seeing is new home sales stuck at low levels (second chart below).

The Vacancy Rates Confirm the Presumption – Millennials Just Can’t Get into Homes

Also contained in the recent housing report are two (of many) vacancy measures – vacancy for homeowners and vacancy for renters.

Both measures continue to float at such low levels, suggesting that, for whatever reason (probably money), the demand for housing is staying with the existing housing stock, rather than demanding new homes (which would show up as increased vacancy rates).

Back to the Money

Hidden in the (well, kind of hidden) in the GDP report is compensation as a percentage of GDP. A look at last week’s figure follows.

The most recent figures show some strength in wages, with compensation as a percentage of GDP growing to 54.3% of nominal GDP.

Unfortunately, compensation as a percentage of GDP is still low by historical standards. The average over the past 50 years is around 56%. The approximately 2% differential sums to about $360 billion. If one adds the increased cost of homes relative to income over the past 50 years, it’s about $3 trillion in wages missing from the demand side for housing.

It’s likely this $3 trillion that’s causing the weak Homeownership Rate. And, it will likely take a good deal of time for the Millennial generation to make up that $3 trillion.

At some level, this must make parents and other interested observers at least a little sad.

Housing Figures – Conclusion

The Homeownership Rate is close to recent lows at 63.5%. Behind the low rate is more than just a Millennial generation that is opting for travel over homeownership. Instead, Millennials need another $3 trillion to keep up with their parents’ generation.

This suggests that the Homeownership Rate may stay low for some time.