[vc_row][vc_column][vc_column_text]Despite the COVID-19 pandemic, home ownership statistics in the United States have shown an increase in recent quarterly data. This is true despite many reasons, such as tax laws, housing policies, and changing economic situations that make buying a home quite challenging.<\/p>\n
Still, homeowners vs. renters statistics by the state will show you that a considerable chunk of the American population would prefer to rent a home than to buy one. Although rental prices have gone up substantially, they are still a more affordable choice.<\/p>\n
Owning a home is a life goal for most people, so let\u2019s look at some relevant statistics to gain a deeper understanding of this basic need.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Remarkable Home Ownership Rates (Editor\u2019s Choice)” font_container=”tag:h2|text_align:center” use_theme_fonts=”yes”][vc_column_text]<\/p>\n
[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”The United States Home Ownership Statistics” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]The home ownership rate is the percentage of households that own the house they live in. It varies significantly depending on the race, ethnicity, age group, type of household, and location.<\/p>\n
(US Census Bureau)<\/em><\/p>\n The highest US home ownership rate recorded in 2019 was 64.8% during Q3. The rate in Q2 of 2020 was higher by 3.8% from last year\u2019s Q2 rate and 2.6% in Q1 of 2020.<\/p>\n (Statista)<\/em><\/p>\n The home ownership rate in the United States had been 67.2% in 2009, but it dropped to 65.1% in 2019. When we look at the rate of home ownership by year, you will see that in the past three decades, the highest recorded rate was 69.2% in 2004. It had gradually decreased and hit the lowest point of 63.7% in 2016, before starting to increase again.<\/p>\n (Bankrate)<\/em><\/p>\n The average 30-year fixed 2019 mortgage rate was 3.04%, with an APR of 3.38%. The 5\/1 adjustable-rate mortgage (ARM) rate is 3.06%, with the 4.06% APR.<\/p>\n (Bankrate)<\/em><\/p>\n Although most Americans dream of owning a home, stagnant salary growth, combined with skyrocketing home prices, is really lowering the chances of increasing the number of homeowners in the US.<\/p>\n (Zillow)<\/em><\/p>\n The value is seasonally adjusted and includes only the middle price tier of houses. In the past year, home values in the United States have increased by 5.8%, and an increase of 7.0% is expected in the next year.<\/p>\n (PR Newswire)<\/em><\/p>\n However, since younger and older individuals tend to have different home preferences, homeowners\u2019 average age varies among the states. For one, homeowners in Florida, a well-known location for retirement, are mainly older than those in other states.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Homeowners vs. Renters Statistics” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]What factors affect an average American\u2019s decision to rent or buy a home? We know that owning a home is a good investment in the long run, but if you\u2019re earning minimum wage, are you really able to afford it? Let\u2019s look at these renters vs. owners statistics to find out more.<\/p>\n (PR Newswire)<\/em><\/p>\n This does not mean that rents stopped growing. In fact, they are rising faster than wages in 52% of markets. However, in 70% of markets, home prices rise faster than rental prices, which is one of the biggest roadblocks in American home ownership.<\/p>\n (CNBC)<\/em><\/p>\n In New Jersey, homeowners with a mortgage spend approximately $2,398 each month. On the other hand, the latest rental statistics<\/a> show that the average rental cost across the state is $1,249. With a disparity like this, it\u2019s no wonder that the percentage of Americans who own a home is so low.<\/p>\n (Statista)<\/em><\/p>\n This percentage has increased drastically since January 2016, when only 69% of renters believed renting is more affordable. This data shows that many Americans consider leasing a more viable option, as home ownership in the US is out of reach for many.<\/p>\n (US Census Bureau)<\/em><\/p>\n This Q2 2020 price was relatively lower than the 2019 average home ownership price of $220,700 and way lower than the highest median price of $230,000.<\/p>\n (US Census Bureau)<\/em><\/p>\n This is the figure from the second quarter of 2020, and it\u2019s highest since the 1990s. Even with this considerable amount, experts think it\u2019s cheaper to rent a house in the US than to buy it.[\/vc_column_text][vc_single_image image=”2677″ img_size=”full” alignment=”center”][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Homeowner Stats and Demographics” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]To understand the various factors that affect home ownership, either positively or negatively, we need to look at homeowners\u2019 structure in the US. What age group, race, and income class make up a majority of homeowners? Let\u2019s take a peek at the following homeowner demographics to find out.<\/p>\n (Urban Institute)<\/em><\/p>\n Although millennials currently make up the majority of the population, looking at home ownership statistics by age will paint a different picture. Millennials\u2019 home ownership rate is lower than the one of the two previous generations. Currently, 60.4% of Gen Xers (born between 1965\u20131980) own a home, while 75% of baby boomers (born between 1946\u20131964) own a house.<\/p>\n Job insecurity, stagnant wages, and increased housing costs are among the top challenges millennials face.<\/p>\n (US Census Bureau)<\/em><\/p>\n This is expected, as families with higher incomes have a bigger capacity to buy a home. Despite the COVID-19 crisis, the home ownership rate in Q2 2020 increased by 2.1% compared to last year\u2019s Q2. Moreover, the rate increased by 4.1% since 2016. It\u2019s also worth noting that this year\u2019s Q2 percentage is the highest recorded in the last four years.<\/p>\n (US Census Bureau)<\/em><\/p>\n The most recent statistics reveal that Q2 of 2020 saw the highest homeownership rate in the last four years within families earning less than the median income. It went up by 5.2% from the previous quarter.<\/p>\n (US Census Bureau, Urban Institute)<\/em><\/p>\n The US housing market trends<\/a> in Q2 of 2020 show that younger households have a lesser chance of owning a home than the older population. According to statistics of home ownership by age, only 40.6% of people under 35 own a home.<\/p>\n Factors including delayed marriage, postponed childbearing, and increased education debt are observed as the main culprits of low home ownership rates within younger generations.<\/p>\n (US Census Bureau)<\/em><\/p>\n Home ownership statistics by race show that home ownership among Non-Hispanic White Americans was the highest in the US in Q2 2020. The figure is higher by 2.9% than in the same quarter of 2019. Home ownership among Non-Hispanic Whites alone has increased by 3.9% in the last four years.<\/p>\n (US Census Bureau)<\/em><\/p>\n Home ownership among African Americans is the highest in the US in Q2 2020. It went up by 6.4% from Q2 of 2019 and by 5.3% in the last four years.<\/p>\n (Statista)<\/em><\/p>\n This age group has a higher second home ownership percentage than those aged 18\u201329 and 50\u201364, whose rates are 4.68% and 4.13%, respectively.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Home Ownership Rates by State” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]The U.S. Census Bureau conducts a survey called the American Community Survey to understand home ownership at a state level. A state\u2019s median family income and median home value, among others, are determinants of home ownership in each state.<\/p>\n (US Census Bureau)<\/em><\/p>\n In Q2 of 2020, 81.3% of Delaware residents owned a home, making it the state with the highest home ownership rate. Maine comes second at 79.3%, followed by West Virginia with 78.2%. In 2005, West Virginia held the spot of the state with the highest rate of home ownership.<\/p>\n (USA Today)<\/em><\/p>\n The percentage of American homeowners in the city is 89.2%. Moreover, Illinois\u2019s median family income is about $61,229, while Orland Park has a much higher household income of $85,802. In case you\u2019re wondering why, it\u2019s because of its proximity to Chicago, where its residents get high-paying jobs.<\/p>\n (Experian, Business Insider)<\/em><\/p>\n The high prices of houses in Hawaii are caused by the island\u2019s appeal to vacationers, tourists, and wealthy mainland homebuyers. This increased median home value is one of the reasons there is a low percentage of homeowners in this US state. You can buy a 2-bedroom, 2-bathroom house in Ewa Beach or a 2-bedroom, 1-bathroom house in Wahiawa for the average home price.<\/p>\n (24\/7 Wall St)<\/em><\/p>\n With an average mortgage debt of $256,744, 72.9% of Maryland homeowners are still paying a monthly home mortgage. The average household income in Maryland is $80,776, putting it on the top spot. However, concerning home ownership, it\u2019s far down the list.<\/p>\n (US Census Bureau)<\/em><\/p>\n In Q2 2020, the Midwest had a 71.4% rate of home ownership, followed closely by the South region with 71.1%. The Northwest and West regions are a little behind with 63.3% and 62.6%, respectively.<\/p>\n It\u2019s important to note that all the regions had higher figures than in the same quarter of the previous year.[\/vc_column_text][vc_single_image image=”2678″ img_size=”large” alignment=”center”][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Home Ownership Rate by Country” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]Now that we know how home ownership looks like in the US, let\u2019s check out some of the global statistics and see how they relate. Perhaps there is also a lot to learn from looking into home ownership rates by the country.<\/p>\n (Statista)<\/em><\/p>\n From 2007 to 2018, there was an 8.1% decrease in home ownership in the UK. During that time frame, home ownership swayed between 63% and 73% of the population.<\/p>\n (BBC)<\/em><\/p>\n Romania\u2019s 96% rate is primarily attributed to cheap housing, government policies, and pro-property management culture. Europe generally has the highest homeownership rates in the world \u2014 between 56% and 96%.<\/p>\n (Trading Economics)<\/em><\/p>\n With the latest 42.5% rate and a rate of 41.3% in 2018, Switzerland bagged the spot for the smallest percentage of homeowners globally. However, on the upside, this percentage has increased significantly from 1990 when it was 31.1%.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Conclusion” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes”][vc_column_text]Home ownership is a primary box to tick to achieve the American dream, but it could also be the largest purchase you will make in your lifetime. From looking at the home ownership rate by age, it is clear that millennials face an uphill battle.<\/p>\n The cost of buying a house is higher than ever, and mortgages can be tough to deal with. Some experts have attributed low ownership rates among millennials to the heavy burden of student loans.<\/p>\n The statistics above also clarify that many European countries are ahead of the US regarding home ownership.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Frequently Asked Questions (FAQ)” font_container=”tag:h2|text_align:center” use_theme_fonts=”yes”][vc_toggle title=”What percentage of Americans own homes?” style=”round” color=”sky” custom_font_container=”tag:h4|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]At the time of writing, 67.9% of American homes are owned by their inhabitants. Home ownership in the United States increased gradually from 64.1% in 1990 to 69.2% in 2004, then dropped to 63.7% in 2016, and now has been slowly rising again.<\/p>\n The Journal of Economic Perspectives published a paper stating that home ownership trends in the United States lag, compared to other developed countries. In 1990, home ownership in the United States ranked 10th among 18 developed countries. However, recent numbers show that it\u2019s now just below the average rate of developed countries.[\/vc_toggle][vc_toggle title=”What percentage of the population owns their own home?” style=”round” color=”sky” custom_font_container=”tag:h4|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]With a lot of factors to consider, home ownership can vary around the globe. The lowest recorded rate is 42.5% in Switzerland, while the highest is 96% in Romania.<\/p>\n In general, home ownership rates are affected by age, gender, race, education, marital status, family size, and family income. For example, in the United States, older individuals are more likely to own a living place than younger adults. There is also a more significant percentage of Non-Hispanic White American homeowners than any other racial group in the US.[\/vc_toggle][vc_toggle title=”What percentage of millennials are homeowners?” style=”round” color=”sky” custom_font_container=”tag:h4|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Millennials outnumber other generations regarding the population, yet they own fewer homes than the two generations that came before them. While only 32% of American millennials currently own the living spaces they occupy, the percentage of homeowners by age shows that Gen Xers have a 60.4% rate and baby boomers are now at 75%.<\/p>\n The skyrocketing prices of houses do not help their case. In many American cities, home prices are unreachable for millennials. For example, in Los Angeles, only 19% of houses have affordable prices for millennials that earn median salaries.<\/p>\n On the other hand, home ownership among Chinese millennials is at 70%, mainly due to their culture of being good savers and parents helping their sons buy a house to increase the chances of getting married.[\/vc_toggle][vc_toggle title=”Which country has the highest home ownership?” style=”round” color=”sky” custom_font_container=”tag:h4|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]From 2007 to 2018, home ownership in Romania averaged 96.35%, putting the country at the top spot. Global home ownership statistics reveal that it reached the highest rate of 97.60% in 2010 and the lowest rate of 95.50% in 2007. In 2020, home ownership in Romania is 96%.<\/p>\n Generally, the rate of home ownership in Europe is the highest worldwide, ranging between 56% and 96%. Specifically, in Romania, the high rate is attributed to a pro-property management culture, government policies, and cheap housing.[\/vc_toggle][\/vc_column][\/vc_row][vc_row][vc_column][vc_toggle title=”Sources:” custom_font_container=”tag:p|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]<\/p>\n [\/vc_toggle][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row][vc_column][vc_column_text]Despite the COVID-19 pandemic, home ownership statistics in the United States have shown an increase in recent quarterly data. This is true despite many reasons, such as tax laws, housing policies, and changing economic situations that make buying a home quite challenging. Still, homeowners vs. renters statistics by the state will show you that a […]<\/p>\n","protected":false},"author":5,"featured_media":2679,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[170],"tags":[],"_links":{"self":[{"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/posts\/2259"}],"collection":[{"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/comments?post=2259"}],"version-history":[{"count":7,"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/posts\/2259\/revisions"}],"predecessor-version":[{"id":2815,"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/posts\/2259\/revisions\/2815"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/media\/2679"}],"wp:attachment":[{"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/media?parent=2259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/categories?post=2259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/movity.com\/wp-json\/wp\/v2\/tags?post=2259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}2. Home ownership decreased by 2.1% from 2009 to 2019.<\/h4>\n
3. The average 30-year fixed mortgage rate is 3.04%, with an APR of 3.38%.<\/h4>\n
4. 79% of Americans believe that home ownership is an indicator of attaining the American dream.<\/h4>\n
5. The median value of condos and single-family homes in the US is $259,906.<\/h4>\n
6. The average age of homeowners in the US is 54.<\/h4>\n
7. In 59% of US housing markets, paying rent is more affordable than buying a home.<\/h4>\n
8. The difference between the average expenses of homeowners with a mortgage and the average rental price is highest in New Jersey.<\/h4>\n
9. 84% of renters think that renting is more affordable than owning a home.<\/h4>\n
10. In Q2 2020, the median sales price for vacant residential units in the US was $205,600.<\/h4>\n
11. In Q2 2020, the average rent for vacant units in the US was $1,033.<\/h4>\n
12. In 2015, only 32.2% of American millennials owned their homes.<\/h4>\n
13. The home ownership rate for households earning more than or equal to the median family income is 80.5%.<\/h4>\n
14. The home ownership percentage of the households earning less than the median family income is 55.2%.<\/h4>\n
15. 80.4% of individuals aged 65 and above own a home.<\/h4>\n
16. 76% of Non-Hispanic White Americans own a home.<\/h4>\n
17. The African American home ownership statistics show that 47% of African Americans own a house in 2020.<\/h4>\n
18. Second home ownership statistics show that 6.02% of individuals aged 30\u201349 own a second home.<\/h4>\n
19. Delaware has the highest rate of home ownership by state.<\/h4>\n
20. Orland Park, Illinois, is the US city with the highest rate of home ownership.<\/h4>\n
21. Hawaii is the state with the highest median home value of $619,000.<\/h4>\n
22. Maryland has the highest percentage of homeowners with a mortgage.<\/h4>\n
23. The Midwest is the region with the highest percentage of Americans who own homes.<\/h4>\n
24. The rate of home ownership in the UK is 65.2%.<\/h4>\n
25. Romania has the highest percentage of homeowners in the world.<\/h4>\n
26. Global home ownership statistics reveal that Switzerland had the lowest percentage of homeowners in 2018.<\/h4>\n
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