A recent study released by the Federal Reserve Board reveals that homeownership rates vary widely by age, race and location.
The Report on the Economic Well-Being of U.S. Households, which was conducted in 2019 and includes a follow-up survey in April 2020, shows that homeownership rates tend to rise with age. The report reveals that 26% of 18- to 29-year-olds owned their homes compared with 85% of people age 60 and older, as young adults were more likely to live with parents to save money. Similar analysis had been done by NAHB based on the results from Census Bureau's Housing Vacancy Survey.
White adults had higher homeownership rate than Black and Hispanic adults — 71% of white adults owned their homes, compared with 48% and 50% of Black and Hispanic adults, respectively. Moreover, rural residents were more likely to own their homes compared with people living in other areas. Thirty-one percent of rural residents owned their own home without a mortgage, compared with 20% of urban residents.
The survey also provides information on the economic well-being of renters. Renters were asked to indicate all reasons for renting rather than owning. Difficulty accessing a mortgage was a major barrier for renters as 62% reported they were unable to afford a down payment and 41% of renters said they could not qualify for a mortgage.
Other reasons that keep people renting include convenience and affordability. More than half of renters preferred renting because it is cheaper and convenient. Among renters, 35% of respondents were looking to buy a home.
NAHB economist Fan-Yu Kuo provides more analysis in this Eye on Housing blog post.