Homeownership Rate Dips in Fourth Quarter Amid Housing Affordability Woes
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.
Latest from NAHBNow
Economics
May 23, 2025
Volatile Spring Selling Season ContinuesSales of newly built, single-family homes in April increased 10.9% to a 743,000 seasonally adjusted annual rate from a downwardly revised March number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in April was up 3.3% compared to a year earlier.
Material Costs
May 22, 2025
NAHB Members Cite Impact of Tariff Uncertainty on Home BuildingTariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. NAHB members have been sharing the impact that these tariffs are having with media outlets across the United States.
Latest Economic News
Economics
May 22, 2025
Existing Home Sales Fall in AprilDespite the brief retreat in mortgage rates and increased supply, existing home sales dropped to 7-month low in April, according to the National Association of Realtors (NAR). This unexpected decline suggests buyers’ activity continues to be constrained by economic uncertainty and ongoing affordability challenges even with improved market conditions.
Economics
May 22, 2025
Income Growth Helps Mute Existing Affordability ConstraintsDespite solid income gains and lower home prices, Americans still continue to face major housing affordability challenges, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).
Economics
May 21, 2025
Gains for Multifamily Missing Middle over Last YearThe missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties.