Homeownership Rate — Definition and What It Means for Your Income
The percentage of occupied housing units owned by their residents, rather than rented.
Homeownership rate is the percentage of occupied homes that are owned (versus rented) by their occupants. National rates hover around 65%, but vary significantly by state, city, age group, and income level.
Why it matters
Homeownership rate trends reveal how accessible buying a home is in a given market — declining rates in high-cost cities often signal worsening affordability for middle-income buyers.
Example
A city with a homeownership rate of 75% suggests housing is broadly accessible to buyers, while a rate of 35% (common in high-cost urban cores) suggests most residents rent due to affordability constraints.
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Homeownership Rate — FAQ
What is the national homeownership rate?
The U.S. homeownership rate is approximately 65%, though it varies significantly — from over 70% in some Midwest states to under 50% in expensive coastal cities.