U.S. Homeownership Rises Slightly as Affordability Pressures Persist

Recent data points to a small gain in homeownership, except in the West

The number of homeowners in the United States has edged higher.

Even so, the national homeownership rate of 65.5% remains below the country’s average of 66.3% over the past 25 years, according to a National Association of Home Builders report based on the latest U.S. Census Bureau data.

The federal agency said the increase was “not statistically different” from the prior quarter’s 65% rate or the 65.3% level recorded a year earlier.

The home builders association described the change as “a modest quarterly increase,” while adding that the housing market still “continues to reflect significant affordability challenges.”

Those pressures include higher mortgage rates and a limited number of homes for sale. Data from Redfin showed that even with a slight national dip in median home prices, borrowing costs kept monthly payments elevated.

Ownership patterns differ by region and age

Some regions performed better than others. Census Bureau data showed gains in the Northeast and Midwest, no change in the South, and a year-over-year decline in the West, where ownership slipped from 60.7% to 60.6%.

Homeownership in the United States reached its high point in 2004, at 69.2%. Despite the latest nationwide increase, the home builders association report noted that ownership fell in some age brackets.

For households headed by people under 35, the rate declined 0.9 percentage points to 36.6% compared with the same period a year earlier. The steepest drop was among those ages 35 to 44, where the rate fell from 61.1% to 60.1%.

Utah’s edge for younger buyers is narrowing

Utah has traditionally posted a higher homeownership rate than the nation as a whole, though that lead has been shrinking, according to the University of Utah’s Kem C. Gardner Policy Institute report on the state’s housing market.

In the latest figures cited, 68.3% of Utah households owned their homes, compared with 65.3% nationally. A decade earlier, Utah stood at 69.9% versus 63.7% in the U.S. The university report said the most notable shift has come among homeowners under 35.

A separate study commissioned by the Salt Lake Board of Realtors found that just over half, 50.1%, of Utah households headed by people ages 25 to 34 owned their homes, compared with 40.4% nationwide.

Still, Utah’s share of young homeowners has been shrinking over time because affordable choices remain scarce. After three years, the state is only about a quarter of the way toward Gov. Spencer Cox’s goal of building 35,000 new starter homes by 2028.