Homeownership Rate Dips in Fourth Quarter Amid Housing Affordability Woes
The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate declined to 65.7% in the last quarter of 2023, amid persistently tight housing supply and elevated mortgage interest rates. This is a 0.3 percentage-point drop from the third quarter (66%) and 3.5 percentage points lower than the peak of 69.2% in 2004. The rate remains below the 25-year average rate of 66.4% amid a multidecade low for housing affordability conditions.
The homeownership rate for those under 35 decreased 0.6 percentage point to 38.1% in the fourth quarter of 2023. This is the largest decline among all age categories, as this age group is particularly sensitive to mortgage rates and the inventory of entry-level homes.
The homeownership rates of adults in all age groups decreased over the last year, except those aged 55-64 and 65 years and over. The homeownership rates in the 45-54 age group decreased 0.3 percentage point from 70.6% to 70.3%. Next, were households aged 35-44, who experienced a modest 0.2 percentage point decline. However, homeownership rates of those aged 55-64 showed an increase of 0.3 percentage points.
NAHB Principal Economist Na Zhao provides more in this Eye on Housing post.
Latest from NAHBNow
Advocacy
Feb 09, 2026
House Passes NAHB-Supported Major Housing PackageThe House this evening approved the Housing for the 21st Century Act, a major bipartisan housing package that takes much-needed steps toward addressing our nation’s critical lack of housing.
Economics
Feb 09, 2026
The Housing Shortage, Explained by 2024 DataPersistently low homeowner and rental vacancy rates indicate that the U.S. housing market remains structurally undersupplied.
Latest Economic News
Economics
Feb 10, 2026
Weaker Demand, Unchanged Lending Conditions for Residential Mortgages in Fourth QuarterLending standards for most types of residential mortgages were essentially unchanged but overall demand was weaker in the fourth quarter of 2025, according to the recent release of the Senior Loan Officer Opinion Survey (SLOOS).
Economics
Feb 09, 2026
Lower Rates Lift Mortgage Activity at Start of the YearMortgage application activity rose sharply in January, driven primarily by a surge in refinancing activity as mortgage rates declined to a new low. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, increased 12.9% from December on a seasonally adjusted basis and was 61.3% higher than a year earlier.
Economics
Feb 06, 2026
The Size of the Housing Shortage: 2024 DataPersistently low homeowner and rental vacancy rates indicate that the U.S. housing market remains structurally undersupplied.