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
Multifamily | Economics | IBS
Feb 17, 2026
Multifamily Market Expected to Cool in 2026 as Vacancies RiseThe rental market has slowed following a pandemic-era boom due to demographic changes, softer labor market and rising vacancies and is moving towards a more constrained development environment, according to economists speaking at the National Association of Home Builders (NAHB) International Builders’ Show in Orlando today.
Economics
Feb 17, 2026
Builder Sentiment Edges Lower on Affordability ConcernsPersistent affordability challenges, including high housing price-to-income ratios and elevated land and construction costs, helped push builder confidence lower for the second straight month to start the year.
Latest Economic News
Economics
Feb 17, 2026
Builder Sentiment Edges Lower on Affordability ConcernsBuilder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
Economics
Feb 17, 2026
How Rising Costs Affect Home AffordabilityHousing affordability remains a critical issue, with 65% of U.S. households unable to afford a median-priced new home in 2026. When mortgage rates are elevated, even a small increase in home prices can have a big impact on housing affordability.
Economics
Feb 16, 2026
Cost of Credit for Builders & Developers at Its Lowest Since 2022The cost of credit for residential construction and development declined in the fourth quarter of 2025, according to NAHB’s quarterly survey on Land Acquisition, Development & Construction (AD&C) Financing.