Affordability challenges show no signs of easing
Homeownership among Americans under 35 declined to 36.4% in the second quarter of 2025, according to US Census Bureau data, the lowest rate among all age groups during the period.
The national homeownership rate stood at 65% from April through June, down from 65.1% in the first quarter and from 65.6% a year earlier. The latest figure represents the lowest rate since before the COVID-19 pandemic.
Housing affordability and supply challenges
Realtor.com senior economic research analyst Hannah Jones said renting remains the more affordable option in many areas, which continues to limit buyer activity. Jones said that high home prices, mortgage rates, and constrained inventory are contributing to current conditions.
"Renting is far more affordable than buying in much of the country, which means more households are opting to rent than to buy today," he said.
Homeownership in the Midwest reached 69.5%, the highest among all regions. The South followed at 66.6%, down from 67.1% in the previous quarter. The Northeast and West reported homeownership rates of 61.4% and 60.7%, respectively, both showing annual declines.
Age-based disparities
Individuals aged 35 to 44 recorded a homeownership rate of 61% in the second quarter, a decrease of 1.2 percentage points compared to the same period last year. Those aged 45 to 54 fell to 69.2%, a 1.9-point drop. Americans aged 55 to 64 saw a rate of 75.8%, slightly up from the prior quarter and flat year over year. Households aged 65 and older posted the highest rate at 78.6%, unchanged from the second quarter of 2024.
Jones said that limited supply and affordability constraints are likely to keep homeownership growth limited, particularly for younger and lower-income buyers.
Racial and ethnic homeownership
White households held a homeownership rate of 74%. Asians, Native Hawaiians, and other Pacific Islanders followed at 62.1%. Hispanic households recorded a rate of 48.8%, while Black Americans had the lowest at 43.9%.
Vacancy rates and prices
The homeowner vacancy rate stood at 1.1%, slightly higher than the prior quarter and level with Q2 2024. Louisiana recorded the highest rate at 2.2%; Wisconsin had the lowest at 0.1%. The median list price for vacant homes rose to $346,700, a 15% increase from Q1.
Renter-occupied housing made up 31.3% of total units, with a national rental vacancy rate of 7%. Median asking rent was $1,494. Owner-occupied units accounted for over 58% of the U.S. housing inventory.
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