Washington, D.C.—The latest homeownership rate declined to 65% in the second quarter of 2025, marking its lowest level since late 2019, according to the Census’s Housing Vacancy Survey (HVS). With mortgage interest rates remaining elevated and housing supply still tight, many buyers are finding it increasingly difficult to purchase a home, with housing affordability now at a multi-decade low. Compared to the peak of 69.2% in 2004, the homeownership rate is currently 4.2 percentage points lower and remains below the 25-year average rate of 66.3%.
Homeownership rates dropped among almost all age groups:
- The 45-54 age group dropped 1.9 percentage points from 71.1% to 69.2%.The 35-44 age group decreased by 1.2 percentage points from 62.2% to 61%.
- Those under 35 dropped 1 percentage point to 36.4% in the second quarter of 2025. This age group is particularly sensitive to mortgage rates and the inventory of entry-level homes.
- Homeownership rates for householders aged 55-64 and 65 years and over stayed unchanged from a year ago.
According to the National Association of Home Builders (NAHB), the national rental vacancy rate inched down to 7% for the second quarter of 2025, after steadily increasing since 2021. Meanwhile, the homeowner vacancy rate stayed at 1.1%, remaining near the survey’s 67-year low of 0.7%.