LOW RISKANNUAL

Probability of Being a Homeowner

65.9%

Annual probability in US

About 65.9% of American households own their home, though the rate varies dramatically by age, race, and income.

|Type: GOVERNMENT

The US homeownership rate stands at approximately 65.9%, according to the Census Bureau. While this has fluctuated over decades (peaking at 69.2% in 2004 before the housing crisis, dropping to 63.4% in 2016, then recovering), it represents a fundamental metric of the American economy.

Homeownership rates vary dramatically by demographics: White households (74.6%), Asian households (63.3%), Hispanic households (51.1%), and Black households (45.9%). The racial homeownership gap between Black and White Americans (about 29 percentage points) has barely changed since the 1960s and is wider than in 1900. Age is also a major factor: under 35 (38.5%), 35-44 (62.1%), 45-54 (70.6%), 55-64 (75.7%), and 65+ (79.4%).

The median home price exceeded $400,000 in 2023, and with mortgage rates above 7% (the highest in over 20 years), affordability has become a major barrier. A household earning the median income would need to spend about 41% of income on mortgage payments for a median-priced home, well above the recommended 28%. First-time homebuyers account for about 26% of purchases, near an all-time low.

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