Due to a multi-decade low for housing affordability conditions and other factors, the U.S. homeownership rate remains the lowest in the last two years.
WASHINGTON, D.C. – The U.S. homeownership rate was 65.6% in the second quarter of 2024, unchanged from the first quarter, according to the U.S. Census Bureau’s Housing Vacancies and Homeownership Survey (HVS).
The homeownership rate is below the 25-year average rate of 66.4%, due to a multi-decade low for housing affordability conditions. It remains the lowest rate in the last two years.
The homeownership rate for the head of households under the age of 35 decreased to 37.4% last quarter, the report found. Amidst elevated mortgage interest rates and tight housing supply, affordability is declining for first-time home buyers. 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.
The homeownership rates for householders under 35, between 35 and 44, and 65 and over decreased compared to a year ago.
The homeownership rates among householders under 35 experienced a 1.1 percentage point decrease from 38.5% to 37.4%. The 35-44 age group had a 0.9 percentage point decreased from 63.1% to 62.2%. Meanwhile, households with ages 65 years and over, experienced a modest 0.3 percentage point decline.
However, homeownership rates for the 45-54 age group rose slightly to 71.1% in the second quarter of 2024, up from 70.8% a year ago. At the highest level, the homeownership rate of 55-64 year-olds inched up to 75.8% from a year ago.
Source: NAHB, Na Zhao, NAHB principal economist
© Florida Realtors®
©Florida Realtors®
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