The "owned" category (most single family homes and condos) has been close to normal for some time, though there's certainly room for a couple more tenths of a percent decline.
The rental category took a big drop, which is positive for the housing industry, even if negative for home-hunters.
Both categories are important, as there is some mixing of people between the two categories.
Keep in mind that these are national averages; some local markets look very different. In addition, an excess supply of housing in Michigan does little to help fast-growing Sunbelt states.
Looking forward, I expect fairly good growth. In fact, we could have 20 percent stronger housing construction without overbuilding.