Homeowner data and statistics 2023

Amid dogged inflation, as Americans grapple with the steep cost of, well, everything, homeownership has become an elusive goal to achieve. It peaked in 2005 when well over two-thirds of American housing units were “owner-occupied” (as U.S. Census Bureau lingo puts it). This homeownership rate then began to sink, down to 63.1 percent in 2020 — its lowest level in five decades. It has budged only slightly since then.

It’s not hard to see why. Between the first quarter of 2021 and the first quarter of 2022, housing prices increased 18.7 percent, according to the Federal Housing Finance Agency Price Index. While the appreciation pace has slowed somewhat — prices climbed 4.3 percent between Q1 2022 and Q2 2023 — it’s still headed upward. In fact, at $410,200 (as of June 2023), the median existing-home sales price is the second-highest price ever recorded since January 1999, when the National Association of Realtors (NAR) began tracking the data.

Rising mortgage interest rates haven’t helped either, jumping from around 3 percent during the pandemic to around 7 percent currently. Homebuyers on a $3,000 monthly mortgage payment budget have lost $30,000 in purchasing power since February 2023 alone. In other words, they can afford to purchase a $450,000 home in July, compared to one priced at $480,000 five months ago, and a $510,000 one a year ago.

High inflation is the No. 1 reason that Americans across regions, age, race and income aren’t feeling financially secure, according to Bankrate’s Financial Freedom Survey. Housing is a key component in inflation. The shelter category, which includes housing costs, consistently has been the largest contributor to the Consumer Price Index’s monthly all-items increase for the past several months.

Given such market realities, it’s small wonder that 73 percent of aspiring homeowners cite affordability as their primary obstacle to their aspiration, a March Bankrate survey found. And 1 in 4 Americans (25 percent) say the lack of housing affordability and having to rent (rather than own) makes them feel financially insecure, according to Bankrate’s recent Financial Freedom survey.

Like many other aspects of the U.S. economy, however, the housing market constantly fluctuates, based on buyer demand, mortgage interest rates, inflation, amount of available inventory, and other dynamics. Let’s look at the key facts and statistics to better inform current and future homeowners.

Key homeowner data 2023

• The homeownership rate in the U.S. as of the first quarter of 2023 is 66%.
• The number of U. S. households increased by just 10.1 million from 2010 to 2020, fewer than in any other decade between 1950 and 2010.
• The homeownership rate among young adults (25-to-34-year-olds) has declined from 45% in 1990 to 41.6% as of 2021.
• The number of first-time homebuyers declined to just 26% in 2022, which is the lowest level since the National Association of Realtors began tracking data. That figure also represents a significant drop from 34% one year earlier.
• The typical recently purchased home is 1,800 square feet with three bedrooms and two bathrooms, and dates from 1986.
• 22% of recent homebuyers are veterans and 1% are active-duty service members.
• A majority of buyers purchased their homes for 100% of the asking price, while 28% purchased for more than the asking price.

U.S. homeownership rates by state

The map below showcases homeownership rates by percentage for each state, based on the latest data from the U.S. Census Bureau.

Quarterly homeownership rates by population percentage

Typically, there is incremental movement in homeownership statistics over time. However, homeownership rates are subject to volatility during major economic events. For example, after peaking at 69 percent in 2004, the Great Recession (2007-09) led to homeownership rates declining, falling to just 63.4 percent by 2016. As homeownership began to slowly recover, the rate peaked again at 67.9 percent in the second quarter of 2020 before falling to 65.5 percent at the end of 2021, most likely due to the pandemic. Throughout 2022, the homeownership rate has remained within the same statistical range. As of the first quarter of 2023, the rate of U. S. homeownership is at 66 percent.

The table below showcases the quarterly homeownership rate for the past three years.

Year	First quarter rate	Second quarter rate	Third quarter rate	Fourth quarter rate
SOURCE: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey, March 15, 2023
2022	65.4%	65.8%	66%	65.9%
2021	65.6%	65.4%	65.4%	65.5%
2020	65.3%	67.9%	67.4%	65.8%

The 10 states with the highest homeownership rates

Below are the top 10 states, ranked by the percentage of their populations who are homeowners, as of year-end 2022.

West Virginia	78.6%
Wyoming	75.3%
Minnesota	75.1%
Delaware	74.9%
Maine	74.9%
South Carolina	74.7%
New Hampshire	74.6%
Michigan	74%
Iowa	73.8%
Mississippi	73.1%

The 10 states with the lowest homeownership rates

Below are the bottom 10 states, ranked by the percentage of their populations who are homeowners, as of year-end 2022.

Connecticut	64.8%
Georgia	64.7%
New Jersey	64.2%
Texas	63.6%
Massachusetts	61.2%
Nevada	60.3%
Hawaii	59.2%
California	55.3%
New York	53.9%
District of Columbia	42.3%

Average age of homeowners

A home purchase continues to be one of the largest investments many Americans will make in their lifetime. The graph below showcases homeownership statistics by age, highlighting that for many people, the homeownership journey begins before age 35 and expands over time, with the largest group of homeowners being over age 65.

Homeowner rates by race and ethnicity

Homeownership statistics by race show that White households have the highest rates of homeownership. The homeownership rate for Asian homeowners is the second highest at 61 percent followed by Hispanic homeowners at more than 48 percent, according to 2022 Census data. For Black homeowners, the rate remains lower at just 45 percent.

Homeowner rates by gender

Despite often having a lower household income, women consistently make up the second largest group of homeowners, behind married couples — and have done ever since the National Association of Realtors (NAR) started keeping track in 1981.

When the NAR first began collecting data 43 years ago, 73 percent of home buyers were married couples and 11 percent were single women, while 10% were single men. Fast forward to 2022 and single women continue to be a force to be reckoned with: 61 percent of home buyers are married couples and 17% are single women, while 9 percent are single men. Single women homebuyers hit a peak in 2006, when they accounted for 22 percent of those making purchases.

While women continue to buy homes in significant numbers they often face financial challenges or stress. The realities of the continued gender wage gap mean that women typically come to the table with a smaller down payment than their male counterparts, which requires taking out a larger mortgage. This in turn results in women starting out with less equity in their homes than men.