By Manuel Gutierrez, Consulting Economist to NKBA
Following a sharp 2 percent drop in homeownership in 2021, the rate rose 0.6 percent to 66.2 percent in Q3 of this year. This year’s gain is still 1.2 percent short of the 67.4 percent level in 2020, and 3 percent lower than the all-time peak of 69 percent in 2004.
- Homeownership rose for all age groups except 65+, with the biggest gains among 45-to-54 year-olds, rising 1.3 percent to 71.4 percent. 35-to-44 year-olds rose 1.2 percent to 62.5 percent.
- Households under age 35 and those between 55 and 64 each increased by just under 1 percent. The ownership rate among the youngest group is now 39.3 percent, while the 55-to-64 group is almost double, at 74.6 percent.
- All race and ethnic groups enjoyed improvements in homeownership in the third quarter. Asian households posted the largest gains, up 1.4 percent to 61.6 percent.
- Homeownership rose in three of four U.S. regions, with the Midwest dipping 0.8 percent.
- Despite steady gains in homeownership, the number of renters has increased even faster. Since 2000, the number of homeowner households rose 18.3 percent to 84.7 million, while renter households jumped 27.5 percent to a total of 43.6 million.
