2022 Homeownership Statistics And Insights

Homeownership is an integral part of the American dream. It provides stability, comfort and an opportunity to develop generational wealth. While homeownership rates have fluctuated with home costs and inventory, they’ve averaged above 65% for a majority of the last two decades.

Homeownership in the U.S. peaked in 2004 at 69.2% and is currently at a 10-year high of 65.5%. Of course, homeownership statistics vary by race, ethnicity and age.

As COVID-19 has impacted the real estate industry over the last two years, we highlight the latest homeownership statistics for current and prospective owners.

Key Findings:

• The Midwest has the greatest homeownership rate (70%) while the West has the lowest (60.2%).
• Over 83 million housing units are owner occupied – about 65.5% of U.S. homes.
• Seniors ages 70 – 74 have the highest homeownership rate at 84%.
• 1% of millennials are homeowners as of 2021.
• Only white Americans exceed the national average homeownership rate (65.5%) with a rate of 74%.
• Black Americans are the least likely to own their homes, with a homeownership rate of 44.7%, which is 20.1% lower than the national average.
• Veterans have one of the highest homeownership rates of any demographic group, averaging 72%.
• The median monthly mortgage payment is $1,100, and experts recommend budgeting an additional $910 a month to cover homeownership costs.

US Homeownership Rate

The current U.S. homeownership rate is the highest it's been in 11 years at 65.5%. Rates peaked in 2004 before falling briefly after the 2008 housing crisis, but they’ve remained relatively consistent with an average rate of 66.3%.

• The current homeownership rate is 65.5% – the highest it's been since 2011¹.
• America’s highest homeownership rate in the last 30 years reached 69.2% in 2004¹.
• The Midwest had the highest homeownership rate during the first quarter of 2022, while the West saw homeownership rates 5.2% below the U.S. average¹.
  • Midwest homeownership rate: 70%
  • South homeownership rate: 67.4%
  • Northeast homeownership rate: 61.8%
  • West homeownership rate: 60.2%
• Rising home values are also driving homeowners’ equity gains. Homeowner equity increased 4.1% in the fourth quarter of 2021 – about $1.04 trillion².
• Over 83 million (65.5%) of U.S. housing units are owner occupied, compared to 43.95 million (34.4%) renter-occupied homes in 2021³.
• Foreclosures have remained at a 16-year low since June 2020 (214,323 homes, or 0.16%). Just 151,153 (0.11%) homes were filed for foreclosure in 2021⁴.
• Foreclosure filings peaked in 2010 with 2.87 million homes filed. This equaled 2.23% of total housing units⁴.

Homeownership By Age

Older Americans have the highest homeownership rate, as seniors 75 and older average 78.7%. Younger homeowners under 30 are still early in their careers and building wealth. Their homeownership rate is naturally lower at 29.45%.

• The median age of American homeowners was 52 in 2021⁵.
• Millennials purchased their first home at 27 years old on average, though they hoped to buy their first home at 25⁶.
• Generation X and baby boomers delayed their first home purchase, becoming homeowners at the average age of 30⁶.
• The majority of all homeowners purchased a house between 1,501 and 2,500 square feet⁷.
• Americans ages 42 – 56 have the largest homes, with 27% of those homeowners owning houses 3,000 square feet or larger⁷.
• Over half (56%) of homeowners 23 – 31 years old own houses fewer than 2,000 square feet⁷.
• Generation X (40 – 55) has the highest average mortgage debt of any generation at $247,563, followed by millennials (24 – 39) at $237,349⁸.
• The Silent Generation (75+) has the lowest average mortgage debt at $133,827⁸.
• Seniors 65 and older have the highest homeownership rates at 79.6%⁹.
• 23% of millennials and Gen Z home buyers plan to use cryptocurrency to cover their down payment¹⁰.

Homeownership By Race

The divide in homeownership rates by race and ethnicity are significant, with white Americans as the only group to average above the national homeownership rate of 65.5%.

People of color are far less likely to become homeowners with the following homeownership rates:

• Asian, Native Hawaiian, Pacific Islander populations: 59.4%
• Hispanic populations: 49.1%
• Black populations: 44.7%

• White Americans are 44.9% more likely to own their home than Americans of color¹¹.
• Only white American homeownership rates are above the national average of 65.5%¹¹.
• Homeownership rates for people of color have never met or exceeded the national average rate since data by race and ethnicity began recording in 1994¹¹.

The Cost Of Homeownership

First-time home buyers may not be fully aware of homeownership costs beyond their monthly mortgage payment. Private mortgage insurance, property taxes and home maintenance costs should all be considered in a homeowner's budget.

• The median monthly mortgage payment is $1,100 in the U.S.¹²
• Average mortgage payments are lowest in Alabama ($1,147) and highest in Wyoming ($1,428)¹².
• The S&P Case-Shiller Index reported home prices had increased 18.8% from December 2020 to December 2021 – the highest calendar year increase in 34 years of recording¹³.
• Homeowners in Arizona (27.42%), Utah (27.05%) and Idaho (27.02%) saw the greatest annual home appreciation across the U.S.³
• Over 38% of non-homeowners say the down payment or closing costs are a financial barrier to purchasing a home¹⁰.
• Closing costs for a median-priced home ($346,800) vary between $10,404 – $20,808 based on a 3% – 20% down payment¹⁴.
• Homeowners should budget for an average of $910 a month to cover homeownership costs and maintenance¹⁴.
• New Jersey has the highest property tax rate at 2.49% and an average annual property tax of $5,419¹⁵.
• Hawaii has the lowest real estate tax rate of just 0.28% and an average annual property tax of $606¹⁵.

Homeownership For Veterans And Service Members

Veterans Affairs (VA) offers several financial and housing resources to service members, veterans and their families, including access to VA mortgage loans and grants. These resources have helped veterans become the second largest demographic of homeowners at 72%.

• Veterans had a 72% homeownership rate in 2017 – higher than nonmilitary (61.8%), active duty (42.7%) and national averages (64%) of the time¹⁶.
• Similar to national averages, older veteran and military populations have higher homeownership rates than younger service members and veterans. Those 55 and older average an 85.5% homeownership rate, compared to 18-to-34-year-olds at 36%¹⁶.
• Homeownership rates for veterans of color were significantly higher than national averages by race and ethnicity in 2017¹⁶.
  • White veterans homeownership rate: 82%
  • Asian veterans homeownership rate: 75%
  • Hispanic veterans homeownership rate: 69%
  • Black veterans homeownership rate: 63%
• Rocket Mortgage is the second largest lender of VA loans in 2022 to date. They’ve guaranteed 37,285 (8.2%) of VA loans this year, with an average loan amount of $295,291¹⁷.
• The VA guaranteed a record number of mortgage loans in 2020, totaling 1.2 million loans and $363 billion¹⁷.

Homeownership And Sustainability

Green living is a growing priority for families interested in their health, the environment and affordable utility costs. Interest in renewable energy and green home products continues to increase for homeowners. 

• Over 27% of homeowners have or are currently installing solar panels, and 67% of non-solar homes are interested in the switch¹⁸.
• Southern states have the highest interest in solar panels (45%) – especially homeowners in Southern Atlantic states, with a 51% interest, though only 3% of Southern homeowners had installed panels¹⁹.
• Western homeowners are the most likely to have solar panels installed at 14% for Pacific states and 17% for homeowners in the mountains¹⁹.
• 96% of homeowners interested in solar panels wanted to save on utility bills, while 87% are interested in protecting the environment¹⁹.
• Over one-third (38.5%) of homeowners have purchased eco-friendly home improvement products in the last year²⁰.
• Green building techniques and materials can decrease energy consumption by 33% on average, and water consumption by 30%²¹.
• Portland, OR is the most sustainable U.S. city, with 49.1% of its power produced by renewable energy²².

The Bottom Line

Owning your own home isn’t going out of style anytime soon, but real estate trends and homeownership statistics are always evolving.

If you’re looking to buy your first home, learn more about home buying and what to expect as you prepare to house hunt.

Sources:

1. Census Quarterly Residential Vacancies, 2022

2. HUD Housing Market Indicators, 2022

3. Statista Housing Markets In The United States, 2021

4. ATTOM U.S. Foreclosure Activity, 2022

5. Census Historical Household Tables, 2021

6. Rocket Homes℠ Perception of Starter Homes, 2022

7. Size Of Purchased Homes In The U.S. 2021

8. Experian Average Age To Buy A House, 2020

9. Census Housing Vacancies And Homeownership, 2021

10. Rocket Homes℠ Are Down Payments Delaying Home Buying, 2022

11. St. Louis Fed Homeownership Rate By Race And Ethnicity, 2022

12. Rocket Mortgage What Is The Average Mortgage Payment, 2021

13. S&P Corelogic Case-Shiller Reports, 2022

14. Rocket Homes℠ Cost Of Owning A Home, 2022

15. Rocket Mortgage Property Taxes By State, 2022

16. Urban U.S. Military Impacts On Homeownership, 2018

17. VA Lender Statistics, 2022

18. Rocket Homes℠ 67% Of Households Want Solar Panels, 2022

19. Pew Research Center MoreHomeowners Say They want Solar Panels, 2019

20. Hardware Retailing What Your Customers Want from Eco-Friendly Products, 2019

21. EPA Smart Growth And Affordable Housing, 2021

22. Rocket Homes℠ Tops 15 Most Sustainable Cities, 2021