Homeownership Rate Dips to 65.7% Amid Housing Affordability Woes

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

Homeownership rates for householders aged less than 35 decreased to 38.1 percent in the fourth quarter of 2023. This age group, particularly sensitive to mortgage rates and the inventory of entry-level homes, saw the largest decline.

The national rental vacancy rate stayed at 6.6 percent, and the homeowner vacancy rate inched up to 0.9 percent from 0.8 percent. The homeowner vacancy rate is still hovering near the lowest rate in the survey’s 67-year history (0.7 percent).

Homeownership rates of all age groups decreased over the last year, except those aged 55-64 and 65 years and over. Homeownership rates among householders aged less than

35 experienced a 0.6 percent decrease, from 38.7 percent to 38.1 percent, followed by the 45-54 age group with a 0.3 percent decrease from 70.6 percent to 70.3 percent. Next, were households aged 35-44, who experienced a 0.2 percent decline. However, homeownership rates of householders aged 55-64 showed an increase of 0.3 percent.