The U.S. homeownership rate stood at 65.6% in the second quarter of 2024, showing no change from the first quarter but marking the lowest level in the past two years. This figure is now slightly below the 25-year average of 66.4%, driven by a persistent decline in housing affordability. As high mortgage rates and limited housing supply continue to pressure buyers, the rate of homeownership has been significantly affected, particularly for younger households.
Among those under 35, the homeownership rate has fallen to 37.4%, the lowest recorded in four years. This age group has been most affected by rising mortgage rates, high home prices, and a scarcity of entry-level homes, all of which are eroding affordability. Consequently, younger buyers, who are typically more vulnerable to such conditions, saw the largest decline in homeownership rates compared to other age groups.
The data from the Census Bureau’s Housing Vacancies and Homeownership Survey (HVS) highlights these shifting trends in housing, with the national rental vacancy rate holding steady at 6.6%. Meanwhile, the homeowner vacancy rate slightly increased to 0.9%, although it remains near the lowest levels in the 67-year history of the survey, which recorded a rate of 0.7% at its previous low.
Declining Homeownership Across Various Age Groups
The homeownership rate for those under 35 has fallen by 1.1 percentage points compared to the previous year, from 38.5% to 37.4%. Other age groups have also seen slight decreases, with the 35-44 age group experiencing a 0.9 percentage point drop, from 63.1% to 62.2%. Homeownership rates for those 65 and older have decreased by 0.3 percentage points. However, there were modest increases in homeownership among older age groups, with those aged 45-54 rising slightly to 71.1% from 70.8% and those 55-64 seeing an increase to 75.8% from 75.2% a year earlier.
Growth in Household Formation
The total number of households in the U.S. reached 131.4 million in the second quarter of 2024, an increase from 130 million a year ago. The increase was primarily driven by gains in both renter households, which rose by 855,000, and owner-occupied households, which saw a rise of 515,000.
The challenges facing younger homebuyers, along with the overall shifts in housing trends, suggest that affordability will continue to be a major issue in the housing market. Despite slight increases in some segments of homeownership, the broader trend points to a continued struggle for many, particularly among those looking to buy for the first time.