Homeownership Trends and Statistics

Those 65 years of age and older had the greatest rates of homeownership in the fourth quarter of 2023. Homeownership rates were lower for other age groups. Reducing racial/ethnic and income/affordability disparities will likely raise homeownership rates for all groups. Large increases, though, will necessitate important institutional adjustments. In the short future, putting those reforms into practice will be difficult.

Nationwide

The American Dream is centered on homeownership, which offers families stability, a place to raise their children, and the opportunity to accumulate money over several generations. However, due to economic factors including mortgage interest rates, property prices, and the availability of new buildings, homeownership rates are frequently erratic. The national homeownership rate, which peaked in 2004 at 69 percent, has been rising since 2021 as the economy has improved, although it is still below that level. In certain places, the rate is also notably lower due to a number of factors, including high housing costs, population density, patterns of domestic migration, and the pipeline's capacity for residential growth. After peaking in 2011, the proportion of owners who are significantly cost-burdened—that is, who spend more than half of their income on housing—has since decreased. According to PD&R, the percentage of Americans who own a home will continue to climb gradually and will reach 65% by 2040. Reducing barriers related to income and affordability, as well as race and ethnicity, could hasten this increase.

Local

Rates of home ownership differ by area. The Northeast and Midwest have lower homeownership rates than the West and South. This could be an indication of the state of the local real estate market, including available and priced homes. Furthermore, compared to the South and West, mortgage interest rates are higher in the Midwest and Northeast. Despite low mortgage rates and a robust housing supply, the national homeownership rate fell between 2020 and 2021. This is probably the outcome of home prices being driven up by investors and other wealthy purchasers. Delivering brand-new homes at affordable price points should be the industry's primary priority. Age, ethnicity, and type of household all affect homeownership rates. For instance, in the city, white and black households have lower homeownership rates, while Asian households have the highest rates. Asian households' homeownership rates in Staten Island increased more than those of any other borough between 2011 and 2021. On the other hand, homeownership decreased most among white households in Staten Island, while it increased very little among black and Hispanic households.

State

State-to-state variations in homeownership rates are a reflection of several factors. These include the availability of education, the state's economy and employment market, the environment, the amount of housing available, especially newly constructed homes, and the generational patterns among Millennial renters, who are predicted to soon make up the majority of households. Furthermore, the rates of homeownership vary throughout racial and ethnic groupings. For instance, white homeowners are the most likely to be homeowners, whereas African-American and Hispanic households are the least likely to be homeowners. Through 2024, the national homeownership rate is expected to be close to 65 percent. Due to the COVID-19 pandemic and cheap interest rates, which encourage prospective homeowners to purchase, the rate is anticipated to grow somewhat in 2020. However, over time, the rate of homeownership may decline due to factors including rising mortgage rates, soaring inflation, and other economic worries. To view comprehensive homeownership projections and trend data, select a state.

City

A major component of many Americans' long-term financial objectives is property ownership, with homeownership rates often greater in cities than in rural areas or low-density states. However, a variety of city-specific elements, including lifestyle choices, educational possibilities, and local economic trends, might affect the percentage of people who own a property. For instance, millennials are less likely than previous generations to be homeowners. Younger millennials may be delaying starting a family or have student loan debt, which can hinder their entry into the home market. Moreover, buying a property may be more difficult for them due to their lower wages and greater housing expenditures. When this is going on, older millennials with expertise and wealth accumulation could be able to buy a home at a more attractive moment. Non-Hispanic white people own homes at a rate of 75% nationwide, making them the most likely demographic to be homeowners overall. For racial and ethnic minority groups, there is still a significant homeownership disparity nonetheless.