Homeownership Rate Lowest In Two Years

Homeownership in the U.S. was at its lowest rate in two years through the second quarter of 2024, according to the latest Census data.

The rate remained unchanged from quarter one at 65.6% in Q2, the U.S. Census Bureau’s Housing Vacancies and Homeownership Survey revealed.

This was below the 25-year average of 66.4%, with decreases in the homeownership rate among heads of households under age 35, between 35 and 44, and 65 and older, as compared to a year ago.

The rate for householders under 35 decreased to 37.4% last quarter – a 1.1 percentage point decrease and evidence of declining affordability for new homebuyers.

“Amidst elevated mortgage interest rates and tight housing supply, affordability is declining for first-time homebuyers,” commented Na Zhao, principal economist for the National Association of Home Builders (NAHB). “This age group, who are particularly sensitive to mortgage rates, home prices, and the inventory of entry-level homes, saw the largest decline among all age categories,” Zhao added.

This was followed by a 0.9 percentage point decrease for the 35-44 age group, which reported a homeownership rate of 62.2% for the second quarter. 

Next up were households led by people ages 65 years and over, which experienced a modest 0.3 percentage point decline. 

Homeownership rates for the 45-54 age group inched up to 71.1% in Q2, from 70.8% a year ago. 

The homeownership rate of 55-64 year-olds edged up to 75.8% from a year ago.