{"id":27289,"date":"2024-02-08T06:00:00","date_gmt":"2024-02-08T11:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=27289"},"modified":"2024-03-04T14:43:13","modified_gmt":"2024-03-04T19:43:13","slug":"homeownership-rates-vs-home-prices-usa","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/homeownership-rates-vs-home-prices-usa\/","title":{"rendered":"Here\u2019s How US Homeownership Rates Have Changed as Home Prices Increased"},"content":{"rendered":"\n

Homeownership is influenced by a mix of individual choices, market dynamics, generational trends, and notably, the state you live in. Different states have different affordability levels, resulting in widely different homeownership rates across the United States. Additionally, median home prices across the US have been steadily increasing, adding another layer of complexity to homeownership accessibility. According to the US Census Bureau<\/a>, between 2002 and 2023, the national homeownership rate was at its lowest in 2016 when it fell to 62.9%, but it has now risen to 65.7% in Q4 of 2023. However, some states far exceed the national rate, while others are far below it. <\/p>\n\n\n\n

To understand how the homeownership rate has changed across the US in the past five years, Zoocasa analyzed median home price data and homeownership rates in 26 states and districts from 2018 to 2023. Some states were excluded from this report because sufficient median home price data could not be found. <\/p>\n\n\n\n

Single-family median home prices were sourced from each state\u2019s real estate board from December of each year unless specified. The national median home price for each year was sourced from the National Association of REALTORS\u00ae<\/a>. Homeownership rates for each state were sourced from the US Census Bureau, Quarterly Residential Vacancies and Homeownership<\/a> in Q4 of each year. <\/p>\n\n\n\n

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Only 10 States and Districts Experienced a 5-Year Decline in the Homeownership Rate<\/h1>\n\n\n\n

From 2018 to 2023, just 10 out of 26 states and districts experienced a drop in the homeownership rate. Among those, Utah experienced the largest drop, going from a homeownership rate of 74.7% in Q4 2018 to 69.1% in Q4 2023. At the same time, Utah\u2019s median home price increased by 58% from $299,900 in 2018 to $473,880 in 2023. The majority of states experienced a price increase of less than 52% from 2018 to 2023, putting Utah\u2019s 5-year price increase at the higher end of the spectrum and possibly contributing to its homeownership rate decline. <\/p>\n\n\n\n

Of the 10 states and districts that experienced a drop in the homeownership rate, four have homeownership rates below the national rate of 65.7%: Colorado<\/a>, New Jersey, New York, and Washington DC. Washington DC not only has the lowest homeownership rate on our list, at 38.2%, but it also witnessed the smallest increase in median home prices at a mere 6% from 2018 to 2023. And with a median home price of $635,000, Washington DC is the second-most expensive area on our list to purchase a home, likely contributing to its low homeownership rate. <\/p>\n\n\n\n