FACTS ON POLICY: Homeownership Rates

August 19, 2008

Homeownership rates in the United States peaked in 2004, hitting 69.2 percent.

After hitting a peak in 2004, homeownership rates have since declined slightly; overall, however, the rates have not fluctuated much during the past ten years. In the first quarter of 2008, the homeownership rate was 67.8 percent. The homeownership rate has been more than 60 percent since 1960s, with roughly two out of three people owning homes since 1997.

• Homeownership rates remained fairly flat between 1900 and 1930.

• Rates increased the most during the 1940s and 1950s, going from 43.6 percent in 1940 to 61.9 percent by 1960.

• The homeownership rate fell almost four percentage points during the 1930s and slightly during the 1980s; otherwise it has trended upward during the past century.

• The Midwest had the highest rate of homeownership, while the West had the lowest. The difference between the two regions was almost ten percentage points—72.0 percent in the Midwest versus 62.8 percent in the West.

• There is a large difference in homeownership rates between rural and metropolitan areas: the homeownership rate was 67 percent in metropolitan areas, versus 75 percent for nonmetro areas. The South and Midwest, which have high rates of homeownership, also have fewer major cities than the West and Northeast, where homeownership rates are lower.

• Not surprisingly, homeownership rates correlate with age; the rate was lowest among those under 35 and highest among those aged 55 to 64. The latter group’s homeownership rate, 80.4 percent, was almost double that of the under-35 group, 41.3 percent.

• Among racial and ethnic groups, Whites had the highest homeownership rate: 75.0 percent. Both Hispanics and Blacks had rates under 50 percent—48.9 percent and 47.1 percent, respectively.

• The homeownership rate among married couples was 83.8 percent in 2007. By contrast, the rate among single-person households was 55.2 percent.

• Females had slightly higher homeownership rates than males; the rate among households headed by females (no husband present) was 54.1 percent, versus 50.1 percent for those led by a single male head of household.

Figure 1
U.S. Homeownership Rates, 1900-2008 (in percent)

Sources:

• U.S. Census Bureau, Housing Vacancies and Homeownership, Annual Statistics: 2007, “Table 5. Homeownership Rates for the United States: 1968 to 2008 (in percent)”(April 2008).

• U.S. Census Bureau, Census of Housing, Historical Census of Housing Tables, “Homeownership.”

• U.S. Census Bureau, Census of Housing, Historical Census of Housing Graphs, graph of homeownership rates, 1900–2000

• U.S. Census Bureau, American Housing Survey for the United States: 2005 (August 2006).

• U.S. Census Bureau, Housing Vacancies and Homeownership, Annual Statistics: 2007, list of various tables.

• Frank Nothaft, Freddie Mac, “Homeownership Rate Now Approaching 70 Percent”(July 2003).

• Freddie Mac, The Freddie Mac Reporter Fact Book 2007.

• James Mikesell, U.S. Department of Agriculture, Economic Research Service, Amber Waves 2004, “Rural Homeownership Rising”(April 2004)—Metro vs. nonmetro housing.

Quiz Source Information:

• U.S. Census Bureau, Housing Vacancies and Homeownership, Annual Statistics: 2007, “Table 13. Homeownership Rates by State: 1984 to 2007.”