Weaker Homeownership Data for Younger Households

The homeownership rate for those under the age of 35 dropped to 37% in the third quarter of 2024, reaching the lowest level since the first quarter of 2020, according to the Census’s Housing Vacancy Survey (HVS). Amidst elevated mortgage interest rates and tight housing supply, housing affordability is at a multidecade low. The youngest age group, who are particularly sensitive to mortgage rates, home prices, and the inventory of entry-level homes, saw the largest decline among all age categories.

Homeownership rates declined across all age groups compared to a year ago, except for those aged 55-64. Householders under 35 experienced the largest drop, declining by 1.3 percentage points from 38.3% to 37%. The 45-54 age group also saw a 1.3 percentage point decrease, decreasing from 71% to 69.7%. For householders aged 35-44, who experienced a modest 0.6 percentage point decline. Among those 65 years and over, homeownership inched down slightly from 79.2% to 79.1%. In contrast, the homeownership rate of the 55–64 age group rose to 75.9% from 75.4%.Slide2 3

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