Believe it or not, the American dream of homeownership is reaching more people than it has in nearly two decades, yet stark disparities in who can achieve it and a soaring cost of living are redefining what it means to call a place home.
Key Takeaways
- In 2023, the U.S. homeownership rate reached 65.7%, marking the highest level since 2005 with 86.1 million homeowner households
- As of Q4 2023, the homeownership rate for households headed by Asian Americans stood at 63.1%, compared to 74.6% for White non-Hispanic households
- In 2022, the millennial homeownership rate was 48.4% for those aged 25-34, up 2.4 percentage points from 2021
- In 2023, the national median home price was $417,700, up 5.2% from 2022 amid low inventory
- Housing affordability index fell to 98.1 in Q4 2023, the lowest since 2007, meaning a typical family spends 28% of income on mortgage
- Inventory of homes for sale was 3.5 months' supply in Dec 2023, down from 5.2 pre-pandemic, driving prices up 6.5%
- U.S. residential energy consumption totaled 21.8 quadrillion Btu in 2022, 20% of total energy use
- Average U.S. household used 10,500 kWh of electricity in 2022, with heating accounting for 42% of energy
- 48% of home energy used for space heating in 2022, natural gas primary source for 58% of homes
- 1 in 5 home fires caused by cooking in 2022, with 172,800 incidents and $1.2B damage
- Smoke alarms present but failed in 25% of home fires 2015-2019, missing in 23% of deaths
- Average homeowners insurance premium rose 20% to $1,700 in 2023 due to climate risks
- 53 million smart speakers in U.S. homes by 2023, up 25% YoY
- Smart lighting market: 120 million bulbs sold 2023, Philips Hue 28% share
- Video doorbells in 18% of homes 2023, Ring capturing 52% market
Homeownership rose to record highs in 2023, yet affordability challenges and major gaps between groups persist.
Home Energy Consumption
- U.S. residential energy consumption totaled 21.8 quadrillion Btu in 2022, 20% of total energy use
- Average U.S. household used 10,500 kWh of electricity in 2022, with heating accounting for 42% of energy
- 48% of home energy used for space heating in 2022, natural gas primary source for 58% of homes
- LED lighting adoption reached 90% of U.S. homes by 2023, saving 1.6 trillion kWh since 2012
- Average annual home energy bill was $2,000 in 2023, with electricity at $1,400 and gas $600
- 55 million U.S. homes had ENERGY STAR appliances in 2022, reducing energy use by 15%
- Water heating consumed 18% of home energy in 2022, with tankless heaters saving 34% vs standard
- Solar panels installed on 4.6% of homes by 2023, generating 170 billion kWh annually
- Insulation upgrades cut heating needs by 20-30% in 50 million homes lacking proper R-value
- Smart thermostats in 47% of homes by 2023 saved average 10% on heating/cooling bills
- Refrigerators used 7% of home electricity in 2022, with Energy Star models 15% more efficient
- Home EV charging added 50 kWh/month per vehicle in 2023 for 2.7 million EVs
- Ductless mini-splits in 12% of homes by 2023 reduced cooling energy 30% vs central AC
- Standby power wasted 5-10% of electricity in 75% of homes in 2022
- Geothermal heat pumps served 1.2 million homes in 2023, cutting energy 44-72%
- Clothes dryers vented 4 trillion Btu waste heat yearly from 85 million units
- Home batteries (5 kWh+) installed in 250,000 residences by 2023, storing 1.25 GWh
- Windows accounted for 25% of heat loss in 80 million homes pre-2000
- Propane used in 5.1 million homes for heating, 9% of energy in non-urban areas 2022
- Heat pump adoption hit 13 million units by 2023, displacing 2.5 quads of fossil fuels
- Residential carbon emissions fell 5% to 1.1 billion metric tons in 2022 due to electrification
Home Energy Consumption Interpretation
While our homes are guzzling a frankly indecent portion of the nation's energy, often for mundane tasks like drying socks or reheating forgotten coffee, the hopeful truth is that we're slowly getting smarter about it, swapping gas-guzzlers for LEDs and heat pumps while our collective carbon footprint begrudgingly shrinks.
Home Safety and Insurance
- 1 in 5 home fires caused by cooking in 2022, with 172,800 incidents and $1.2B damage
- Smoke alarms present but failed in 25% of home fires 2015-2019, missing in 23% of deaths
- Average homeowners insurance premium rose 20% to $1,700 in 2023 due to climate risks
- 7% of U.S. homes uninsured in 2023, 3 million properties at risk totaling $1.8T value
- Falls caused 39% of non-fatal home injuries in 2022, 2.5 million ER visits for seniors
- Carbon monoxide detectors missing in 40% of homes with gas appliances, 400 deaths/year
- Home insurance claims averaged $13,000 per incident in 2023, water damage 24% of total
- 350,000 structure fires yearly caused $9.6B damage 2018-2022, heating 14% cause
- Radon elevated in 1 of 13 homes, linked to 21,000 lung cancer deaths annually
- Burglaries occurred every 26 seconds in 2022, 62% residential with $3.4B losses
- Mold claims surged 24% in 2023, costing insurers $3.5B amid wetter weather
- 85% of fire deaths in homes lacking working alarms 2015-2019
- Pool drownings: 390 children under 5 yearly, 69% in residential pools
- Home wind damage claims hit $25B in 2023 from hurricanes, up 50% decade-over-decade
- Lead paint in 37 million homes built pre-1978 risks 535,000 kids yearly
- Security systems reduced burglary risk 300%, installed in 36% of homes 2023
- Poisonings from household chemicals: 90,000 kids treated yearly
- Wildfire risk affected 45 million homes worth $295B in 2023
- Slip/trip injuries: 1 million ER visits yearly, stairs 31% of cases
- 42 states saw insurance rate hikes >10% in 2023, FL avg 42% due to hurricanes
Home Safety and Insurance Interpretation
We're statistically quite skilled at turning our own homes against us, as evidenced by everything from our routinely neglected smoke alarms and skyrocketing insurance premiums to the lurking dangers of radon, lead, and the humble staircase.
Homeownership Rates
- In 2023, the U.S. homeownership rate reached 65.7%, marking the highest level since 2005 with 86.1 million homeowner households
- As of Q4 2023, the homeownership rate for households headed by Asian Americans stood at 63.1%, compared to 74.6% for White non-Hispanic households
- In 2022, the millennial homeownership rate was 48.4% for those aged 25-34, up 2.4 percentage points from 2021
- Black American homeownership rate in 2023 was 44.1%, reflecting a persistent 30-percentage-point gap compared to White households at 74.3%
- For baby boomers aged 59-77 in 2023, homeownership rate was 78.4%, owning 42% of all U.S. homes despite being 20% of the population
- Hispanic homeownership rate climbed to 49.1% in 2023, the highest on record, driven by a 2.2 million increase in Hispanic homeowners since 2019
- In 2023, 35.3% of homeowners aged 18-34 had student debt, averaging $43,000 per borrower impacting affordability
- Rural U.S. homeownership rate in 2022 was 81.4%, significantly higher than urban areas at 57.3%
- Single women owned homes at a 15.7% higher rate than single men in 2023, with 11.1 million female-headed homeowner households
- Gen Z homeownership rate for ages 18-25 was 26.1% in 2023, doubling from 12.6% in 2013 but still trailing other generations
- In 2023, veteran homeownership rate was 78.6%, with VA loans financing 13% of all purchase mortgages
- Immigrant households had a 53.2% homeownership rate in 2022, lower than native-born at 69.8%, but rising 5 points since 2012
- In Q1 2024, married couples accounted for 61.2% of all homeowners, owning 78 million homes collectively
- Low-income households (<$35k/year) had 46.8% homeownership in 2023, up from 44.2% in 2020 due to pandemic aid
- Empty-nester boomers (65+) owned 28.4 million homes in 2023, representing 32% of the housing inventory
- In 2023, LGBTQ+ homeownership rate was 49.3% for same-sex couples vs 52.1% for opposite-sex
- First-time buyers made up 32% of purchases in 2023, with median age rising to 36 from 31 in 2010
- In 2022, 15.3 million multigenerational households owned homes, up 27% since 2007
- Southern U.S. states had 69.4% homeownership in 2023, highest regionally vs Northeast's 64.2%
- Disabled household homeownership was 54.7% in 2022, with accessibility issues cited by 40% of renters
Homeownership Rates Interpretation
While the overall U.S. homeownership rate hits a post-2005 high, the celebrated national figure masks a deeply uneven landscape, where generational wealth is heavily concentrated among older white homeowners, racial disparities remain stark and persistent, and milestones for some groups, like rising Hispanic and single female ownership, are tempered by the heavy burdens of student debt and unaffordability pressing upon younger generations.
Housing Prices and Affordability
- In 2023, the national median home price was $417,700, up 5.2% from 2022 amid low inventory
- Housing affordability index fell to 98.1 in Q4 2023, the lowest since 2007, meaning a typical family spends 28% of income on mortgage
- Inventory of homes for sale was 3.5 months' supply in Dec 2023, down from 5.2 pre-pandemic, driving prices up 6.5%
- Median sales price for starter homes (<$250k) rose 4.8% YoY to $225,000 in 2023
- Rent-to-price ratio hit 28.4 in 2023, highest in 20 years, making buying 35% more affordable long-term
- Home price-to-income ratio reached 5.56 in Q3 2023, up from 4.2 in 2019, pricing out 69% of renters
- In 2023, 47 U.S. metros had home prices over 3x median income, led by San Jose at 10.6x
- Existing-home sales totaled 4.09 million in 2023, down 19% YoY due to 7% mortgage rates
- Price per square foot for single-family homes averaged $198 in 2023, up 5.1% from 2022
- Foreclosure starts were 0.30% of mortgaged homes in 2023, lowest on record vs 1.1% peak in 2010
- New home median price hit $417,300 in 2023, 10% above existing homes due to builder incentives
- 22% of homes sold above list price in 2023, down from 34% in 2022, with bidding wars in 12% of sales
- Affordability for median income buyer required $109,000 down payment in CA vs national $76,000 in 2023
- Luxury homes (>$1M) saw 7.2% price growth in 2023 vs 4.1% for mid-tier
- Pending home sales index was 72.1 in Dec 2023, 4.2% below pre-pandemic levels
- Home price growth slowed to 3.9% YoY in Q4 2023 from 10% peak in 2022
- 36% of U.S. homes had negative equity in affordability terms in 2023, highest since 2012
- Median listing price was $425,000 in Jan 2024, up 0.3% MoM
- Households spent 32.1% of income on housing in 2023, exceeding 30% burden threshold for 18.8 million
Housing Prices and Affordability Interpretation
It’s a paradox where affordability crumbles under the weight of soaring prices and scant supply, meaning the American Dream is increasingly reserved for those who already own a piece of it.
Smart Home Technology
- 53 million smart speakers in U.S. homes by 2023, up 25% YoY
- Smart lighting market: 120 million bulbs sold 2023, Philips Hue 28% share
- Video doorbells in 18% of homes 2023, Ring capturing 52% market
- Smart thermostats: Nest and Ecobee in 25 million homes, saving $180/year avg
- 72 million smart plugs projected by 2025, 15% adoption in 2023 homes
- Voice assistants used daily by 135 million Americans in 2023, 55% for home control
- Smart locks installed in 12 million homes 2023, reducing bump-key attacks 87%
- Home automation hubs: 8 million units 2023, Samsung SmartThings 35% share
- Smart security cameras: 40 million in U.S. 2023, 60% cloud-connected
- Robotic vacuums: 7.6 million sold 2023, iRobot Roomba 45% market
- Smart refrigerators: 15% penetration in new homes 2023, Samsung 42% share
- Matter protocol compatible devices: 500 million projected by 2024, 20% homes 2023
- Smart blinds/shades in 5.2 million homes 2023, energy savings 12-15%
- Wi-Fi 6 routers in 28% of broadband homes 2023, enabling 50% more devices
- Smart garage openers: Chamberlain/MyQ in 10 million homes
- AI home assistants: 25% of smart homes used predictive features 2023
- Smart mirrors: 2.1 million units 2023, fitness/health focus 65%
- Thread/Zigbee mesh in 35% of new devices 2023, improving reliability 40%
- Smart home cybersecurity breaches: 1 in 4 devices vulnerable 2023
Smart Home Technology Interpretation
The American home is becoming a dazzlingly convenient digital castle, but with a moat that still seems suspiciously easy to cross.
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