Homeownership rate, explained

What it measures

The homeownership rate is the percentage of occupied housing units that are owned by their occupants. The denominator is occupied housing units (owner-occupied plus renter-occupied); vacant homes are excluded entirely. A unit is "owner-occupied" if the householder owns the unit, whether outright or with a mortgage. The metric is sometimes called the owner-occupancy rate to distinguish it from a household-level homeownership rate (which would be expressed as a percentage of households rather than housing units).

The Census publishes homeownership for the United States, every state, county, metro, city, ZIP code, and census tract via ACS Table B25003. The decennial census also publishes the figure.

Why it matters

Homeownership rate is one of the foundational US housing-policy metrics. The federal government has explicit policy aims around homeownership (the mortgage-interest deduction, FHA and VA loan guarantees, the work of Fannie Mae and Freddie Mac all support homeownership at a cost of tens of billions per year). Local governments use the rate as an indicator of neighborhood stability, owner-occupied units are typically maintained better, residents stay longer, and there is more civic engagement. School-district quality, voting turnout, and median household tenure all correlate positively with homeownership rate.

How the Census measures it

ACS Table B25003, Tenure. The Census asks one question of the householder: do they own this home or rent it? Owner-occupied units include those owned outright, those with a mortgage, and those occupied under contract-for-deed arrangements. Renter-occupied includes everyone paying rent, including subsidized renters and those paying no cash rent (typically in exchange for services). The published rate is owner-occupied / (owner-occupied + renter-occupied) × 100.

How to read the numbers

The US homeownership rate is about 65%. State rates range from about 50% (New York, California, Nevada) to nearly 75% (West Virginia, Vermont, Minnesota). Metro rates vary more widely: large coastal metros (New York, Los Angeles, San Francisco, Boston) cluster in the 50-60% range, while smaller and more affordable metros (Pittsburgh, Detroit, Indianapolis, the rural South) exceed 70%. The metric varies dramatically with the local mix of housing types, places dominated by single-family detached homes tend to have higher ownership rates than places dominated by apartments. The rate has trended downward modestly since the 2007 peak (69%) but has stabilized in the mid-60s.

Caveats and limitations

Homeownership rate doesn't capture the equity position of homeowners, a homeowner with a $500K mortgage on a $510K home is counted the same as one who owns outright. It also doesn't distinguish between people who chose to rent and those who would prefer to own but cannot afford to enter the market. A falling homeownership rate in a high-cost market often reflects affordability deterioration; a falling rate in a stable market can reflect demographic change (more young singles, more renters by preference).