Homeownership in 2020 Is below 2000

The 2000s have not been good for homeownership—so far, at least. The 66.6 percent homeownership rate of 2020 was below the 67.4 percent rate of 2000—not only nationally, but in almost every age group and in 30 of 50 states, according to the Census Bureau's Housing Vacancy Survey. 

We all know how this happened—the housing bubble, the collapse of the housing market, the Great Recession, and the long recovery. During the bubble, the nation's homeownership rate climbed to an all-time high of 69.0 percent in 2004. In the slow recovery from the Great Recession, the homeownership rate fell for years. It hit a post-Great Recession low of 63.4 percent in 2016. Since then, the rate has been inching back up each year.

Only two age groups had a higher homeownership rate in 2020 than they did in 2000—householders under age 25, and householders aged 75 or older. Every other age group had a lower homeownership rate, with the biggest declines (5 or more percentage points) occurring among householders ranging in age from 30 to 59.

Homeownership rate by age of householder, 2000 and 2020

	2020	2000	change
U.S. total	66.6%	67.4%	-0.8
Under age 25	25.7	21.7	4.0
Aged 25 to 29	35.3	38.1	-2.8
Aged 30 to 34	49.1	54.6	-5.5
Aged 35 to 39	60.0	65.0	-5.0
Aged 40 to 44	65.5	70.6	-5.1
Aged 45 to 49	68.8	74.7	-5.9
Aged 50 to 54	73.2	78.5	-5.3
Aged 55 to 59	74.9	80.4	-5.5
Aged 60 to 64	78.2	80.3	-2.1
Aged 65 to 69	79.6	83.0	-3.4
Aged 70 to 74	82.1	82.6	-0.5
Aged 75-plus	79.0	77.7	1.3

By state, the biggest decline in homeownership between 2000 and 2020 occurred in North Dakota (down 6.5 percentage points), followed by Pennsylvania (-4.8), and Wisconsin (-3.9). Among the 20 states and the District of Columbia with gains in homeownership between 2000 and 2020, Delaware saw the biggest increase (5.9 percentage points), following by New Hampshire (5.3) and Vermont (4.4).

It remains to be seen how the coronavirus pandemic will affect homeownership. The housing market appears to be hot right now, but that's largely because the pandemic has reduced the number of sellers, driving up prices. 

Source: Demo Memo analysis of the Census Bureau's Housing Vacancy Survey