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Homeownership Rate Falls to Lowest Since 2019

by | Jul 29, 2025 | Uncategorized

Key Points

  • Homeownership Rate Drops: National homeownership fell to 65.0% in Q2 2025—the lowest since 2019, per NAHB data.
  • Younger Buyers Affected Most: Ages 35–54 saw the largest declines in ownership. Under-35 buyers dropped to 36.4% ownership.
  • More Renters, Fewer Owners: The U.S. added 1.2 million new renter households, while owner-occupied households declined.
  • Affordability Crisis Continues: Rising mortgage rates and record home prices are pushing buyers out of the market.
  • Rental Demand Rising: Tight vacancy rates and more renters mean investors and landlords are seeing stronger demand.
  • Agent Strategy: Focus on incentives, financing solutions, and realistic expectations with younger or first-time buyers.
Illustration of homeownership decline with red down arrow and house

A Warning Sign: U.S. Homeownership Rate Drops to Lowest Point Since 2019

On July 28, 2025, Eye on Housing (NAHB’s research blog) reported that the national homeownership rate declined to 65.0% in Q2 2025, the lowest since 2019. This marks a slight drop of 0.1 percentage point from Q1’s adjusted 65.1%.

That 65.0% rate stands well below its historical peak of 69.2% in 2004 and remains under the 25‑year average of 66.3%.

Age Breakdown Highlights Buyers Pushed Out

  • Under age 35: fell from 37.4% to 36.4% – near the lowest in over six years.
  • Age 35–44: dropped by 1.2 points to 61.0%.
  • Age 45–54: saw the largest decline, from 71.1% to 69.2%.
  • Age 55+: remained steady year over year.

Renters Rise, Owners Decline

  • Total households increased to 132.5 million, up from 131.3 million a year ago.
  • New households were almost entirely renters, with 1.2 million added.
  • Owner‑occupied households actually declined by 39,000.
  • Rental vacancy rate: 7.0%.
  • Homeowner vacancy rate: 1.1% (near historical lows).

Agent’s Take: What This Means for Buyers, Sellers, and Listings

  • Affordability continues to bite. High mortgage rates and home prices are pushing many prospective buyers—especially younger ones—toward renting instead.
  • First-time buyers are being shut out. Homeownership has declined across younger age groups. For agents working with 30–45 year-old buyers, realistic expectations and creative financing options are key.
  • Investor opportunities are growing. With renter households surging, investors and landlords are drawing more demand—which could raise rents even more if inventory doesn’t catch up.
  • Neighborhoods matter more than ever. Agents should analyze local trends carefully and tailor messaging to their market.

What Other Sources Are Reporting

  • Advisor Perspectives confirms the 65.0% homeownership rate and points to affordability challenges and limited supply.
  • Realtor.com and Harvard JCHS predict 2025 home sales could hit a 30-year low due to tight inventory and high rates.
  • Business Insider reports median home prices are now near $435,000, pricing out many first-time buyers.
  • AP News notes buyers now need over $114K income to afford the median-priced home—up from $67K in 2019.
  • Wall Street Journal highlights how first-time buyers remain on the sidelines while landlords benefit.

Agent-Friendly Takeaways

  • Set expectations. Younger adults are being priced out. Marketing and conversation should reflect reality.
  • Leverage local patterns. Understand the age groups in your market. If you're working with 35- to 44-year-olds, be ready to offer financing alternatives or rate buydown strategies.
  • Renters are rising fast. Great time to talk to landlords, property managers, and investors about rental demand and expansion.
  • Watch mortgage rates. A shift under 6% could bring many buyers back—but it’s not here yet.

Sources & Further Reading

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