By Manuel Gutierrez, Consulting economist to NKBA
Rates in 2021 had fallen a sharp 2.5 percent, but continue to reverse.
- Biggest gains are for the youngest households (led by those under 35 years old), and those aged 45-54, up by 1.3 percent apiece. Overall rate for the younger group is 39.1 percent, and 70.6 percent for the older.
- Households aged 35 to 44 years saw a gain of 0.6 percent to 61.9 percent.
- Homeownership for those aged 55 + declined by 0.3 percent, although continue to lead those younger. The overall rate is 79.3 percent for those aged 65+ and 75.1 percent for 55-64-year-olds.
- Despite last year’s drop, the homeownership rate has increased by nearly three percent since 2016, when it had reached an all-time low of 62.9 percent. However, it remains considerably below the peak 69.2 percent rate of 2004.
- Homeownership rates increased across all racial/ethnic groups. The largest was among Asians whose rate increased 2.4 percent to 61.1 percent.
- Households headed by Hispanics posted the second highest increase at 0.8 percent, followed by Blacks at 0.7 percent.
- Overall homeownership for both Hispanics and Blacks trails all others, at 48.3 percent and 45.3 percent, respectively.
- All regions registered gains in home ownership other than the Midwest, although it remains the overall leader, at 70.1 percent – nearly five percentage points above the national average.
- The West saw the largest increase, at 0.8 percent, but is lowest overall in homeownership at 60.9 percent.
- The increased homeownership rate translates into 1.7 million homeowners added during the last year, more than twice the average rate of 836,000.
