Homeownership Rate Decrease Most Significant for Under 35s
The multi-decade low for housing affordability is taking the greatest toll on younger homebuyers
Aug. 5, 2024
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With the continuing crisis in housing affordability, the share of homebuyers under 35 is decreasing.
While data show that the U.S. national homeownership rate in Q2 2024 held steady relative to Q1 at 65.6%, it was still the lowest rate of homeownership in two years, according to the National Association of Home Builders’ Eye On Housing blog, and below the 25-year average of 66.4%. But the data made clear it's households under 35 that are being hardest hit by housing affordability issues. This group saw the most significant decline in homeownership in Q2 2024.
The homeownership rates for householders under 35, between 35 and 44, and 65 and over decreased compared to a year ago. The homeownership rates among householders under 35 experienced a 1.1 percentage point decrease from 38.5% to 37.4%. Followed by the 35-44 age group with a 0.9 percentage point decrease from 63.1% to 62.2%. Next, were households with ages 65 years and over, who experienced a modest 0.3 percentage point decline. However, homeownership rates for the 45-54 age group inched up to 71.1% in the second quarter of 2024 from 70.8% a year ago. The homeownership rate of 55-64 year olds edged up to 75.8% from a year ago.
