While renting has long been the path for many, did you know that a higher percentage of Americans are buying homes now than at any point since the housing boom of 2005, with ownership accounting for a massive 64% of all household wealth and creating a staggering $31.9 trillion in equity?
Key Takeaways
- The U.S. homeownership rate reached 65.9% in the fourth quarter of 2022, marking the highest level since 2005.
- As of Q2 2023, approximately 86.3 million households owned their homes in the United States.
- Homeownership accounted for 65.4% of U.S. housing units occupied in 2021.
- White non-Hispanic households had a homeownership rate of 73.3% in 2022.
- Black households' homeownership rate stood at 44.1% in Q2 2023.
- Hispanic homeownership rate was 49.1% as of 2022.
- West Virginia had the highest homeownership rate at 76.7% in 2022.
- Delaware's homeownership rate was 72.4% in Q2 2023.
- New York had the lowest at 53.3% homeownership in 2022.
- The U.S. homeownership rate rose from 64.2% in 2012 to 65.9% in 2022.
- In 1940, U.S. homeownership was just 43.6%.
- Homeownership peaked at 69.0% in 2004 before the housing crisis.
- Housing affordability index was 130 in 2020, fell to 98 in 2022.
- Average 30-year mortgage rate rose to 7.08% in October 2023.
- Home price-to-income ratio nationally was 5.6 in 2022.
Homeownership rates are climbing and remain a crucial component of American wealth.
Demographic Statistics
- White non-Hispanic households had a homeownership rate of 73.3% in 2022.
- Black households' homeownership rate stood at 44.1% in Q2 2023.
- Hispanic homeownership rate was 49.1% as of 2022.
- Asian American homeownership rate reached 63.1% in 2022.
- Homeownership rate for householders aged 65+ was 78.9% in 2022.
- Married-couple families had an 81.5% homeownership rate in 2021.
- Single female householders owned homes at 56.3% rate in 2022.
- Households with children under 18 had 64.2% homeownership in 2020.
- College-educated householders owned at 76.8% rate in 2021.
- Homeownership among millennials (born 1981-1996) was 51.5% in 2022.
- Lower-income households (<$35k) had 46.7% homeownership in 2022.
- Upper-income households (>$100k) owned at 82.1% in 2022.
- Veterans' homeownership rate was 78.4% in 2021.
- Native Hawaiian/Pacific Islander homeownership was 56.2% in 2020.
- Foreign-born householders had 53.9% homeownership rate in 2021.
- Female-headed households without spouse owned at 47.2% rate in 2022.
- Gen Z (born 1997+) homeownership rate hit 26.1% in 2022.
- Households with head aged 45-54 owned at 72.3% in 2022.
- American Indian/Alaska Native homeownership was 60.8% in 2020.
Demographic Statistics Interpretation
A nation founded on the idea of equal opportunity still constructs its housing market as a series of exclusive clubs, where your membership odds are frustratingly predetermined by your race, age, income, marital status, and even your parents' timing.
Economic Factors
- Housing affordability index was 130 in 2020, fell to 98 in 2022.
- Average 30-year mortgage rate rose to 7.08% in October 2023.
- Home price-to-income ratio nationally was 5.6 in 2022.
- 28% of median income went to principal/interest for owners in 2022.
- Down payment averaged 13% of home price for first-time buyers in 2022.
- FHA loans comprised 17.2% of purchase originations in 2022.
- Median FICO score for homebuyers was 754 in 2023.
- Renters spend 30.4% of income on housing vs. 21.7% for owners in 2022.
- Homeowners' median net worth was $255,000 vs. $6,270 for renters in 2019.
- Property taxes averaged $3,800 annually for owners in 2022.
- 41% of buyers used conventional loans, 17% FHA in 2022.
- Median home insurance premium was $1,544 in 2022.
- Debt-to-income ratio for mortgaged owners averaged 24% in 2022.
- First-time buyer median income was $97,200 in 2022.
- Repeat buyers' median income reached $130,000 in 2022.
- Student debt delayed homeownership for 20% of millennials.
- Inflation-adjusted home prices up 50% since 2012.
- 76% of homeowners reported positive equity in 2023.
- Median closing costs for buyers were $6,905 excluding down payment in 2022.
- ARM share of mortgages was 7.2% in 2022.
- Homeownership wealth gap: whites $219k equity vs. blacks $18k in 2019.
Economic Factors Interpretation
The dream of homeownership has become a financial obstacle course where high prices, soaring rates, and hefty down payments are expertly whittling the pool of qualified buyers down to those with high incomes and stellar credit, while dramatically widening the wealth gap.
Geographic Distribution
- West Virginia had the highest homeownership rate at 76.7% in 2022.
- Delaware's homeownership rate was 72.4% in Q2 2023.
- New York had the lowest at 53.3% homeownership in 2022.
- Midwest region homeownership averaged 70.9% in 2022.
- Northeast homeownership rate was 64.2% in 2022.
- South region saw 66.8% homeownership in 2022.
- West region's homeownership was 64.7% in 2022.
- California homeownership rate was 55.3% in 2022.
- Maine had 74.5% homeownership rate in 2022.
- Urban areas had 58.1% homeownership vs. 72.4% rural in 2021.
- Detroit, MI had 45.2% homeownership in 2022 metro data.
- Pittsburgh, PA metro homeownership was 67.8% in 2022.
- Florida's homeownership rate was 66.9% in 2022.
- Texas had 62.3% homeownership statewide in 2022.
- Suburban areas averaged 68.5% homeownership in 2021.
- Atlanta, GA metro homeownership was 63.4% in 2022.
- Wyoming homeownership rate reached 73.2% in 2022.
Geographic Distribution Interpretation
While West Virginia claims the property ladder's top rung and New York's renters stage a quiet majority revolt, the American dream of homeownership stubbornly remains a postcard that looks very different depending on your zip code, with a persistent and telling gap between rural havens and expensive urban hubs.
Historical Trends
- The U.S. homeownership rate rose from 64.2% in 2012 to 65.9% in 2022.
- In 1940, U.S. homeownership was just 43.6%.
- Homeownership peaked at 69.0% in 2004 before the housing crisis.
- From 2005 to 2016, homeownership fell 5.3 percentage points to 63.7%.
- Black homeownership increased from 41.4% in 1994 to 49.7% in 2004.
- Median home price rose 150% from $147,100 in 2000 to $368,700 in 2022.
- Owner-occupied housing units grew from 76.2 million in 2000 to 82.7 million in 2022.
- Homeownership for under-35s dropped from 43.4% in 2000 to 37.7% in 2021.
- Post-WWII GI Bill boosted homeownership from 44% in 1940 to 62% by 1960.
- Hispanic homeownership rose from 39.0% in 1995 to 49.1% in 2022.
- Mortgage delinquency rate for owners fell from 11.5% in 2010 to 3.4% in 2022.
- Home sales volume was 7.3 million in 2005 peak vs. 5.0 million in 2022.
- Share of homes owned free and clear rose from 32% in 2000 to 39.8% in 2022.
- 30-year fixed mortgage rate averaged 6.8% in 2000, 3.0% in 2021.
- Homeownership rate for 35-44 age group was 68.5% in 2010, 68.2% in 2022.
- Existing home median price doubled from $219,000 in 2012 to $412,300 in 2022.
- National homeownership rate was 67.4% in 1990.
- Foreclosure starts dropped 90% from 2.9 million in 2010 to 220k in 2022.
- Home equity reached $31.9 trillion in Q4 2022, up from $13.2T in 2012.
Historical Trends Interpretation
While the American dream of homeownership has expanded its doors since 1940, the surging price of admission, especially for the young, suggests we're building a nation of richer homeowners rather than a homeowner nation.
National Overview
- The U.S. homeownership rate reached 65.9% in the fourth quarter of 2022, marking the highest level since 2005.
- As of Q2 2023, approximately 86.3 million households owned their homes in the United States.
- Homeownership accounted for 65.4% of U.S. housing units occupied in 2021.
- The national vacancy rate for owner-occupied homes was 1.0% in 2022.
- Median home value for owner-occupied housing units was $320,900 in 2022.
- 15.3 million U.S. households owned second homes as of 2021.
- Homeownership rate for the U.S. population aged 35-44 was 68.2% in 2022.
- Approximately 58% of U.S. single-family homes were owner-occupied in 2023.
- The share of owner-occupied homes with mortgages was 60.2% in Q4 2022.
- U.S. homeownership rate among households earning over $100,000 annually was 81.4% in 2021.
- In 2020, 66.4% of U.S. family households owned their homes.
- The national rate of homes owned free and clear was 39.8% in 2022.
- 82.7 million owner-occupied housing units existed in the U.S. in 2022.
- Homeownership contributed to 64% of U.S. household wealth in 2022.
- The U.S. saw 5.3 million home sales to owner-occupants in 2022.
- 28.1% of U.S. owner-occupied homes were valued at $500,000 or more in 2022.
- National median monthly housing costs for owners with mortgages was $1,918 in 2022.
- 41% of U.S. homeowners had lived in their home for 10+ years as of 2023.
- Homeownership rate peaked at 69% in 2004 nationally.
- 14.5% of U.S. owner-occupied units were in multi-unit structures in 2021.
National Overview Interpretation
Despite the comforting hum of 86.3 million households achieving the "American Dream," the sobering truth is that for most, this dream comes with a hefty mortgage payment and a vacancy rate so low you'd have better luck finding a unicorn than a reasonably priced house to buy.
Sources & References
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