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Units held off the rental or sale market (and for year-round use and not dilapidated) amounted to 2.8 percent, about the same the rate for the preceding quarter. The rates showed little variation among the North Central, South, and West Regions. The percentages were 2.7 for the North Central Region, 3.3 for the South, and 3.4 for the West. The rate continued to be lowest in the Northeast, where it was 1.9 percent. The proportion for units held off the market was substantially lower in metropolitan areas than in the nonmetropolitan territories.

The "held off market" group includes units reserved for the owner's use as a second home, units temporarily not on the market for personal reasons of the owner, and units not offered for rent or sale because they are located in places where there is little demand for them. The owner's intended use of the unit may change from time to time, so that a vacant unit may shift into and out of the "held off market" category.

Year-round vacancies which were dilapidated constituted 0.7 percent of the total housing. These vacancies were found largely outside SMSA's. Because of their structural condition, dilapidated vacancies are not considered part of the supply that is on the market. Vacancies in the dilapidated group are among the units most likely to drop out of the housing inventory. Vacant units which are intended for occupancy as living quarters are included in the inventory even though they are dilapidated; however, vacant units which are unfit for human habitation or deteriorated to the extent that they are no longer considered living quarters are not included in the statistics for this report.

The percentage of all housing units that are vacant and available for rent and the percentage available for sale in table 3 do not show any smaller vacancy supply than that indicated by the rental and homeowner vacancy rates in tables 1 and 2; they merely reflect different bases, as shown in table 4. The rental vacancy rate, 7.2 percent, expresses the relationship between vacant housing that is offered for rent and the total rental supply. Similarly, the homeowner 1.5 vacancy rate, percent, expresses the relationship between vacant housing offered for sale and the total homeowner supply. The available-for-rent rate of 2.6 percent and the available-for-sale rate,

During the third quarter 1965, approximately 62.9 percent of all occupied units in the United States were occupied by their owners, which is the same as the rate reported for the third quarter 1964.

The North Central Region, with 69.2 percent, had the highest rate of owner occupancy and the Northeast, with 57.2 percent, had the lowest. The South, with 63.7 percent, and the West, with 59.7 percent, ranked second and third, respectively.

As in previous quarters, homeownership was less prevalent in metropolitan areas than in territory outside these areas. Inside SMSA's the owner-occupancy rate was 59.6 percent; whereas outside these areas, the rate was 69.0 percent.

DEFINITIONS AND EXPLANATIONS

Except for the instances noted below, the concepts and definitions used in the quarterly surveys are identical with those used in the 1960 Census.

Standard metropolitan statistical area (SMSA).--Except in New England, an SMSA is a county or group of contiguous counties which contains at least one city of 50,000 inhabitants or more, or "twin cities" with a combined population of at least 50,000, the smaller of which must have at least 15,000. In addition to the county, or counties, containing such a city or cities, contiguous counties are included in an SMSA if, according to certain criteria, they are essentially metropolitan in character and are socially and economically integrated with the central city. In New England, SMSA's consist of towns and cities, rather than counties. A more detailed discussion of the criteria used to define SMSA's is given in 1960 Census of Housing, ume I, States and Small Areas.

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The statistics for inside SMSA's and outside SMSA's presented for the third quarters 1965 and 1964 relate to the areas (212) designated SMSA's at the time of the April 1960 Census. Prior to the second quarter 1962, the statistics related to the areas (168) designated SMA's at the time of the 1950 Census. For a list of the 212 SMSA's and individual chapters their constituent parts, refer to the (or Series HC (1) reports) in the 1960 Census of Housing, Volume I, States and Small Areas; or to the 1960 Census of Population, Volume I, Number of Inhabitants. For a list of the 168 areas and their constituent parts, refer to the individual chapters (or bulletins) in the 1950 Census of Housing, Volume I, General Characteristics; or to the 1950 Census of Population, Volume I, Number of Inhabitants, or Volume II, Characteristics of the Population, Part I, United States Summary.

Housing unit. --Beginning with the second quarter 1960, the 1960 Census housing unit concept was used to enumerate separate living quarters. Prior to that time, separate living quarters were enumerated according to the 1950 dwelling unit definition. The major difference between the two is not in content but in sharpening of the criteria by which separate units are identified. It is expected that the housing unit concept will yield better coverage of both occupied and vacant living quarters than the dwelling unit concept. Although no statistical measure of the effect of the change is available at this time, it is believed to be too small to affect the vacancy rates.

A group of rooms, or a single room is regarded as a housing unit when it is occupied as separate living quarters, that is, when the occupants do not live and eat with any other persons in the structure, and when there is either (1) direct access from the outside or through a common hall, or (2) a kitchen or cooking equipment for the exclusive use of the occupants.

Vacant living quarters which are intended for occupancy as separate living quarters and meet the physical criteria defined above are separate housing units. Since it is customary in some localities for occupants to furnish their own cooking equipment, vacant units without a kitchen or cooking equipment are considered to have such equipment if the last occupants had cooking equipment.

Living quarters of the following types are excluded from the housing unit inventory: dormitories, bunkhouses, and barracks; quarters in predominantly transient hotels, motels, and the like, except those occupied by persons who consider the hotel their usual place of residence; quarters

Dwelling unit, 1950.--The 1950 dwelling unit was defined as follows: A group of rooms occupied as separate living quarters was a dwelling unit if it had separate cooking equipment or if it constituted the only living quarters in the structure. Each apartment in a regular apartment house was a dwelling unit even though it may not have had separate cooking equipment. Apartments in residential hotels were dwelling units if they had separate cooking equipment or consisted of two or more rooms.

Vacant quarters which were intended for occupancy as separate living quarters and met the physical criteria defined above were separate dwelling units. Vacant units were considered as having cooking equipment if they were equipped with such equipment or if the last occupants had cooking equipment.

In general, living quarters of the types excluded from the housing unit inventory were excluded from the dwelling unit inventory.

Occupied housing units.--A housing unit is occupied if a person or group of persons was living in it at the time of enumeration or if the occupants were only temporarily absent, as for example, on vacation. The persons living in the unit must consider it their usual place of residence or have no usual place of residence elsewhere. The count of occupied housing units is the same as the count of households.

Units occupied by persons with usual residence elsewhere.--A housing unit which is occupied temporarily by persons who usually live elsewhere is enumerated as a vacant unit provided the usual place of residence is held for the household and is not offered for rent or for sale. For example, a beach cottage occupied at the time of enumeration by a family which has a usual place of residence in the city is included in the count of vacant units. Their house in the city would be reported "occupied" and would be included in the count of occupied units since the occupants are only temporarily absent.

Units occupied by persons with usual residence elsewhere are included with seasonal units or with year-round vacant units as dilapidated, or not dilapidated but held off the market, as the case may be.

(furnished or

Vacant housing units.--A housing unit unfurnished) is vacant if no persons were living in it at the time of enumeration, except when its occupants were only temporarily absent. Dilapidated vacant units were included if they were intended for occupancy as living quarters; however, if the vacant unit was unfit for use and beyond repair so that it was no longer considered living quarters, it was excluded from the inventory. Vacant units to be demolished were excluded if unfit or if there was positive evidence, such as a sign or mark on the house or in the block, that the unit was to be torn down. New