What You Need to Know
• Only about 53% of U.S. adults own homes, significantly lower than the 65% rate often cited.
• The Federal Reserve Bank of Minneapolis introduced the homeowners-to-population ratio, or HPOP, to measure homeownership more accurately.
• Approximately 14% of U.S. adults live in owner-occupied homes without owning the property themselves.
Only about 53% of U.S. adults own homes, a figure that is significantly lower than the commonly cited 65% homeownership rate, according to new research from the Federal Reserve Bank of Minneapolis. This research introduces the homeowners-to-population ratio, or HPOP, which calculates the percentage of adults who own a home, rather than measuring the share of occupied homes. The traditional measure, tracked by the U.S. Census Bureau, can misrepresent homeownership by classifying households as owner-occupied even if some residents do not own the property. The Minneapolis Fed researchers found that approximately 14% of U.S. adults live in homes owned by others, including adult children living with parents or roommates who own the property.
Why It Matters
Understanding the actual homeownership rate is crucial for policymakers, as inaccurate data can lead to poorly designed housing policies. The new HPOP measure highlights the growing barriers to homeownership in the United States, indicating that homeownership is becoming less affordable. This research reveals that actual homeownership rates are lower across all U.S. states than previously believed, emphasizing the need for more effective strategies to address housing affordability and accessibility.
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