According to data from the US Census Bureau, the homeownership rate in the US was 64.6% in 2019, down from its peak of 69% in 2004 before the 2008 financial crisis. fourth quarter 2019 (1.4 percent) and not statistically different from the rate in the third quarter 2020 (0.9 percent). Existing-home sales also decreased here, and while this region (especially California and the Northwestern areas) has the highest median home prices around, the increase was the lowest, up by 2.3% from 2018. In the first quarter of 2018, the Census Bureau indicated the states with the highest rates of homeownership were West Virginia, Mississippi, South Carolina, New Hampshire, and Vermont. But beginning in 1994, homeownership began rising steadily, peaking at 69.2 percent in 2004. Surprisingly, 17.1% of housing in Vermont is considered to have severe housing problems. The pandemic-induced run on housing has fueled an affordability problem for many of those would-be buyers, despite mortgage rates near the lowest levels ever. Nationwide, the median home price is $346,800. For nearly two months, most of us have been following strict stay-at-home orders from our state and local governments. The aging of the US population will cushion the drop in the overall homeownership rate because older households have higher homeownership rates. Labor-Force Participation Rate: Full Weight (~10.53 Points) Unemployment Rate: Double Weight (~21.05 Points) Homeownership Rate: Full Weight (~10.53 Points) Note: We are using homeownership as a proxy for wealth. Vacancy rates tend to be lowest in urban and suburban areas, where demand for real estate is highest. Statista Logo statista.com The rates vary greatly within the United States, affected by regional, economic geographic, and national dynamics. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. In 2019, the homeownership rate among white non-Hispanic Americans was 73.3%, compared to 42.1% among Black Americans. March 19, 2020 at 9:30 a.m. UTC. Housing Vacancies and Homeownership (CPS/HVS) – Quarterly Vacancy and Homeownership Rates by State and MSA – People and Households – US, Housing Vacancies and Homeownership (CPS/HVS) – Housing Vacancies and Homeownership – People and Households – US, TCJA Simplified Tax Filing Process for Millions of Households, Explore Severe Housing Problems in the United States | 2019 Annual Report, 2015 Data Profiles | American Community Survey, Cities Where You Can Still Live Close to Work, Accompanying Statistics for Homeowner Rates. As the coronavirus outbreak and rise of remote work pushed Americans to move from the city to the suburbs, those who could afford a single-family home have been able to leverage historically low interest rates to build equity and net worth. While these events tend to occur later for millennials, they are beginning to transition to homeownership in greater numbers than ever before. Hispanic homeownership grew the most in Houston, TX, Dallas, TX, New York/Jersey City, NY/NJ, Riverside/San Bernardino, CA and Phoenix, AZ. Areas such as Vermont, West Virginia and Mississippi tend to have higher rates. 3 For members of Generation X (ages 40 to 55 in 2020), the homeownership rate is over 20 percentage points higher at 69.1 percent. Home ownership rates across the United States are influenced by demographic trends, income levels, state of residency, and many other factors alike. The pandemic-induced run on housing has fueled a national affordability crisis for many would-be home buyers. The number of homeowners jumped 1.3 million during 2019, adding 0.3 percentage points to the ownership rate. Regions with high property taxes, weak housing markets, and higher occurrences of natural disasters and crime can make owning a home expensive. Interestingly, New Hampshire has both high home prices and high homeownership rates, which is uncommon in the United States. Quarterly Vacancy and Homeownership Rates by State and MSA Annual Statistics: 2020 Annual and Quarterly Charts of Rental and Homeowner Vacancy Rates and Homeownership Rates The 2020 millennial homeownership rate stands at 47.9 percent according to the most recent data from the Census Bureau’s Current Population Survey. All Rights Reserved. Table 1. In 2017, rural areas had a homeownership rate of 81 percent, compared with 60 percent in urban areas.5 This rural-urban gap is consistent across the country’s four regions but is widest in the Northeast, where the homeownership rate in rural areas (84 percent) was 26 percentage points higher than the rate in urban areas (58 percent).6 After each decennial census, the Census Bureau redefines … Nearly every survey of American consumers indicates that homeownership is a goal for over 85% of the population. Sign up for free newsletters and get more CNBC delivered to your inbox. The median home price in New Hampshire is about $283,233, ranking in the top 50% of states for high home prices. We make the lives of landlords, tenants and real estate investors easier by giving them the knowledge and resources they care most about. But three catalysts – low mortgage rates, AI based loan technology and legislative advocacy – should continue in 2020. All Rights Reserved. For some, quality of life is diminished by a rural lifestyle, and others love splendid isolation and wide open spaces. It is a whole new way of life that has put our daily lives on pause. States with the highest percentage of Native American homeowners are Vermont, Delaware, Louisiana, Mississippi, and West Virginia. Get this delivered to your inbox, and more info about our products and services. Defined by the U.S. Department of Housing and Urban Development, severe housing problems can include lack of adequate kitchen and bathroom facilities (or inadequate for the number of occupants), hazards, and overcrowding. California’s average homeownership rate decreased slightly to 54.8% in 2019. The density of population will almost always affects the livability, affordability, and housing market. In the second quarter of 2019, the U.S. Census Bureau indicated that national vacancy rates were 1.3% for owner-occupied housing units and 6.8% for rental housing units. The homeownership among White people in the United States was 73.7 percent, the highest out of all ethnicities, in the first quarter of 2020. Not surprisingly, severe housing problems go along with lower homeownership rates, with all five ranking within the top 20 states possessing the highest percentages of homes with severe housing problems. Particularly in urban areas, these situations can affect the environment and health of both individuals and entire neighborhoods. Substandard housing can include distressed properties, or properties with lead paint or asbestos exposure, water, and moisture problems, and inadequate heating or cooling. Overall U.S. homeownership in the first quarter of 2019 was at 64.1%, marking a decline of 0.6 percentage points from the fourth quarter of 2018 . Severe housing problems also include residents who are severely cost-burdened, where a disproportionate or unsustainable amount of their income goes towards housing. Pandemic is driving people to buy bigger homes in suburbs, Some newlyweds face a ‘marriage tax penalty’, A financial snapshot of America one year after Covid, What to do to get your $600 stimulus check, Price appreciation is now outpacing wage appreciation in 90% of housing markets nationally. Data is a real-time snapshot *Data is delayed at least 15 minutes. Homeownership rates of black people lag behind whites’ rates, impacting their ability to build generational wealth. The housing shortage, record high prices for homes, and the increasing numbers of households choosing to rent are also reflecting in housing vacancy numbers. Published by Statista Research Department, Feb 17, 2021 The homeownership rate in the United States amounted to 65.8 percent in 2020. The Western region’s homeownership rates were around 59.3%. The Midwest has the highest rate of homewnership among regions at 71.2%. In the most densely populated areas of the United States with low homeownership rates, the percentage of severe housing problems is almost always higher. Homeownership rates describe the percentage of owner-occupied homes. States that have large concentrations of their population living in urban areas typically see much lower rates of homeownership, such as in California and New York. With prices rising faster than earnings, major home-ownership expenses consumed 29.6 percent of the average wage across the nation during the fourth quarter of 2020. The median home value of around $239,965 is higher than most of the South and Midwest. The 71.9 percent white homeownership rate in 2017 represented a 0.7 percentage point decline since 2010, and the 41.8 percent black homeownership rate represented a 2.7 percentage point decline during that same period. The state with the highest level of severe housing problems in 2018 was Hawaii, with an eye-popping number of 27.6%. The 30.1 percentage point gap is wider than it was when race-based discrimination against homebuyers was legal. Existing-home sales declined 0.4% from 2018. We want to hear from you. 1. During 2020, the homeownership rate jumped to roughly 67%, up nearly 3% from a year earlier after remaining largely flat for a decade, according to the Census Bureau. Median home prices increased from 2018 by 4.9% to $248,600. District of Columbia, New York, California, Nevada, and Rhode Island. Some states are better than others to own a home in. State homeownership data are tracked by the U.S. Census Bureau’s American Community Survey, with 2018 data the latest available. Home ownership rate(%) Date of Information Romania: 95.8: 2019 Hungary: 91.7: 2019 Slovakia: 91.3: 2018 Singapore: 91: 2018 Cuba: 90: 2014 Lithuania: 89.9: 2018 Croatia: 89.7: 2019 China: 89.68: 2018 North Macedonia: 88.7: 2017 Nepal: 88.3: 2016 Russia: 87.3: 2016 India: 86.6: 2011 Serbia: 84.4: 2018 Poland: 84.2: 2019 Bulgaria: 84.1: 2019 And the highest percentage of black homeowners are found in Mississippi, Delaware, South Carolina, Wyoming, and Alabama. © 2021 CNBC LLC. The process of buying and selling homes also contributes to the economy through job creation and consumer expenditures that go back into the local and national economies. The rate then went into decline through the Great Recession and beyond, finally recovering to just over the long-run average in 2016. The top 5 regions also includes New Hampshire, Maine, Delaware, and Michigan. Asian homeowners are in the highest percentage in Hawaii, Idaho, Maryland, Maine, and Florida. The percentage of West Virginia’s housing with severe housing problems is around 11.5%. While not all consumers indicate they are ready or able to buy a home immediately, they would like to own a home later on in life. For instance, households having high incomes have a higher tendency to reside in their homes to which they own they title, as opposed to lower income populations for which housing needs are more often met through renting. Even with the signs of a market slowdown, household formation is happening at a higher level than it’s been in nearly ten years, primarily among millennials. In some states the median home value is much higher than median income. The South’s homeownership was around 66%. Mississippi also has some significant disparities in housing affordability from one region to another. States that have large concentrations of their population living in urban areas typically see much lower rates of homeownership, such as in California and New York. 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