Lowest Homeownership Rate for Younger Householders in Four Years
The U.S. homeownership rate was 65.6% in the second quarter of 2024, unchanged from the first quarter and still the lowest rate in the last two years, 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 multidecade low for housing affordability conditions.
The homeownership rate for the head of households under the age of 35 decreased to 37.4% last quarter, the lowest level in four years. 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%. Followed by the 35-44 age group with a 0.9 percentage point decrease from 63.1% to 62.2%. Next, were households with ages 65 years and over, who experienced a modest 0.3 percentage point decline.
However, homeownership rates for the 45-54 age group inched up to 71.1% in the second quarter of 2024 from 70.8% a year ago. The homeownership rate of 55-64 year-olds edged up to 75.8% from a year ago.
Na Zhao, NAHB principal economist, provides more stats in this Eye on Housing post.
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