Growth in Homeownership Rates Across Family Household Types
According to the latest analysis of Census American Community Survey (ACS) data by the National Association of Home Builders (NAHB), homeownership rates have risen significantly across various family household types over the last decade. Notably, single-parent households and multigenerational households have experienced the largest gains.
In 2022, the majority of family households were married couples without children (44%), followed by married couples with children (26%), single-parent households (12%), other family types (12%), and multigenerational families (6%). While the composition of these household types has remained relatively stable, there has been a gradual decrease in the share of married with children and single-parent households, offset by an increase in married couples without children.
Significant Increases in Homeownership Rates
The most striking increase was seen in single-parent households, which experienced a 5.7% increase in their homeownership rate over the past decade. However, despite this growth, the homeownership rate for single-parent households remains the lowest among all household types, standing at 41%.
Married couples with children also saw a notable increase, with their homeownership rate rising by 4.5% from 73% to 78% over the same period. This rise was driven largely by the historically low mortgage rates in 2021, which made homeownership more accessible.
However, the married couples without children group saw a plateau in homeownership rates. For a few years, this group even experienced a decline, but their homeownership rate has now stabilized at 84%, reflecting a slight recovery in recent years. Despite the fluctuations, married couples without children continue to have the highest homeownership rate, maintaining an average of 84% over the past decade.
Home Price-to-Income Ratios: A Burden on Single-Parent Households
The study also examined the home price-to-income ratio (HPI) for different household types. For recent homebuyers, the median property values were considered for owners who moved into their homes within the past year.
- Multigenerational households had a lower HPI due to pooled incomes and shared household budgets, making homeownership more financially feasible.
- In contrast, single-parent households faced a significantly higher burden, with their estimated HPI nearing five times their income. This indicates that single-parent households are heavily burdened by housing costs.
The Role of Low Mortgage Rates in Recent Homeownership Gains
The increase in homeownership rates across most household types can largely be attributed to the low mortgage rates seen in 2021, which helped mitigate the impact of rising home prices. These low rates made homeownership more accessible, even as home prices increased. However, with mortgage rates now elevated, it is unlikely that homeownership rates will continue to rise at the same pace, as higher rates present a challenge to affordability.
Conclusion
The homeownership rate has steadily increased across family households over the past decade, with single-parent and multigenerational households showing notable improvements. While single-parent households still face challenges in achieving homeownership due to income constraints and higher home prices, other groups, such as married couples with children, have benefited from favorable mortgage conditions.
Looking ahead, the trend of rising homeownership rates is expected to slow, especially if mortgage rates remain high, which will continue to pose challenges for many potential buyers.