Homeownership Rate Dips in Fourth Quarter Amid Housing Affordability Woes

Economics
Published

The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate declined to 65.7% in the last quarter of 2023, amid persistently tight housing supply and elevated mortgage interest rates. This is a 0.3 percentage-point drop from the third quarter (66%) and 3.5 percentage points lower than the peak of 69.2% in 2004. The rate remains below the 25-year average rate of 66.4% amid a multidecade low for housing affordability conditions.

The homeownership rate for those under 35 decreased 0.6 percentage point to 38.1% in the fourth quarter of 2023. This is the largest decline among all age categories, as this age group is particularly sensitive to mortgage rates and the inventory of entry-level homes.

The homeownership rates of adults in all age groups decreased over the last year, except those aged 55-64 and 65 years and over. The homeownership rates in the 45-54 age group decreased 0.3 percentage point from 70.6% to 70.3%. Next, were households aged 35-44, who experienced a modest 0.2 percentage point decline. However, homeownership rates of those aged 55-64 showed an increase of 0.3 percentage points.

NAHB Principal Economist Na Zhao provides more in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

Oct 17, 2025

How Diverse Is the Construction Workforce?

Diversifying the construction labor force remains a key priority amid persistent skilled labor shortages. The most notable trend has been the steady rise of Hispanic participation, according to the American Community Survey.

Codes and Standards | Resiliency

Oct 16, 2025

Are Today’s Building Codes Enough to Improve Home Resilience?

In the face of rapidly increasing losses from natural disasters, many housing advocates are pushing for more stringent building codes to make homes more resilient to disaster. But is that the best path forward?

View all

Latest Economic News

Economics

Oct 14, 2025

Custom Home Building Share Declines in 2024

In 2024, 17.5% of all new single-family homes started were custom homes. This share decreased from 18.8% in 2023 and from 20.4% in 2022, according to data tabulated from the Census Bureau’s Survey of Construction (SOC).

Economics

Oct 13, 2025

Hispanics Comprise Nearly One-Third of the Construction Labor Force

Diversifying the construction labor force remains a key priority amid persistent skilled labor shortages. According to the 2023 American Community Survey, non-Hispanic White workers still account for the majority of the construction industry at 57%. Hispanic workers now represent nearly one-third of the labor force at 32%, followed by non-Hispanic Black workers at 5% and non-Hispanic Asian workers at 1.8%.

Economics

Oct 10, 2025

Vinyl Surpasses Stucco as Most Used Principal Exterior Wall Material

In 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018.