US Homeowner Population Declines for First Time Since 2016

Redfin reported that according to its analysis of US Census Bureau data, the number of homeowner households fell 0.1% year-over-year in Q2 to an estimated 86.2 million. While modest, this marks the first decline since 2016. By contrast, renter households rose 2.6% to about 46.4 million, one of the largest increases in recent years.

The median home sale price increased 1.4% year-over-year in July to $443,867, the highest July level on record, Redfin said. Mortgage rates sit at 6.56%, more than double the pandemic-era low. As a result, more Americans are continuing to rent rather than buy. Rates have edged down from a peak above 7% earlier this year, however, which appears to be drawing some buyers back into the market.

The US homeownership rate was 65.0% in Q2, down from 65.6% a year earlier. The rentership rate increased to 35.0% from 34.4%.

Commenting on the report, Redfin’s head of Economic Research, Chen Zhao, said:

“America’s homeowner population is no longer growing because rising home prices, high mortgage rates, and economic uncertainty have made it increasingly difficult to own a home,. People are also getting married and starting families later, which means they’re buying homes later—another factor that may be at play.”