April 2021

Where has homeownership increased the most?

StateQ3 2020 Homeownership RateQ3 2019 Homeownership RateChange in Homeownership Rate
Arkansas70.763.67.1
Texas70637
Alabama74.869.15.7
Kentucky73.968.45.5
South Carolina77.672.15.5
North Carolina6963.75.3
Virginia72.567.94.6
Iowa7469.64.4
Louisiana69.965.54.4
Oregon67.3634.3
Florida69.765.54.2
Oklahoma70.366.14.2
Arizona7166.94.1
Missouri74.270.33.9
Nevada60.556.63.9
Maine78.274.43.8
Delaware75.671.93.7
Indiana74.971.53.4
Wisconsin68.465.13.3
North Dakota63.259.93.3
District of Columbia43.440.23.2
Mississippi76.773.73
New Mexico69.366.33
Tennessee72.169.32.8
Illinois67.164.42.7
Georgia67.965.42.5
Massachusetts62.960.42.5
Wyoming74.472.12.3
Michigan75.473.32.1
New York53.651.62
Colorado66.364.51.8
Minnesota75.173.41.7
Idaho74.773.11.6
California57.256.30.9
Connecticut67.366.50.8
South Dakota70.870.10.7
Ohio68.667.90.7
Alaska63.863.20.6
West Virginia78.678.10.5
Maryland71.170.70.4
Montana67.367.10.2
Nebraska70.770.60.1
Washington6262.5-0.5
New Hampshire74.875.4-0.6
Rhode Island64.164.7-0.6
Utah70.871.4-0.6
Pennsylvania68.869.5-0.7
Vermont68.269.8-1.6
Kansas67.669.3-1.7
Hawaii56.960.7-3.8
New Jersey6266.4-4.4

Even during the past year's economic downturn, it's not surprising to industry insiders that the real estate market has been one of our country's few bright spots. However, the strong showing in home sales, with fewer and fewer Days on Market, is not distributed evenly across the country.

Nationally, from Q3 2019 to Q3 2020, homeownership rates rose 2.6%.Footnote1 In more concrete terms, that's approximately equal to a net gain of 3.9 million homeowners!Footnote1 Just as surprising, most of this increase took place during Q2 and Q3 2020, since the onset of the pandemic.Footnote2

What's more, the proportion of homeownership across the U.S. by the end of Q3 2020 was 67.4%. This is nearly the highest rate recorded nationally since the end of the Great Recession in 2009.Footnote1

A look at homeownership by state

On the state level, not surprisingly, the story is much more varied. Referring to the map, states in the South, generally, experienced greater homeownership growth than in any other region, with an overall gain of 4.6%. Arkansas and Texas are the standouts, with increases of 7.1% and 7.0%, respectively. In fact, the seven states with the highest increases are all in the southern section of the country.Footnote1

At the opposite end of the spectrum, New Jersey's proportion of homeownership dropped 4.4%, the largest state decline over this time period. New Jersey is followed by Hawaii, with a net loss of 3.8%; then Kansas, falling 1.7%; and Vermont, just a fraction better, with a 1.6% drop.Footnote1

Consult the table above to see how your state and your neighboring states fared on this homeownership measure. By the end of Q3 2020, cumulative homeownership remained highest in the Midwest (71.2%), which was followed closely by the South (70.8%). In contrast, ownership in the West and Northeast was significantly lower at 62.1% and 62%, respectively.Footnote1

Over this same time period, when tracking metro area homeownership growth rates versus their suburbs and exurbs, another stark difference emerges. While metros increased by a substantial 2.4%, their outlying areas grew by a remarkable 4.2%.Footnote1

Despite any headwinds, the months ahead hold promise

This impressive rise in homeownership took place amid soaring national median home price increases, up 14.3% over this same 12-month interval.Footnote3 The obvious reason why millions of Americans took the long view and purchased homes in record numbers was the lure of historically low interest rates. Now, as rates remain low and vaccines begin to get COVID-19 under control, the outlook for the home buying spree to continue through the rest of 2021 remains strong.

1 Source: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey, October 27, 2020.

2 "Homeownership Rate Up in the First Quarter 2020," Eye On Housing, NAHB, Na Zhao, April 28, 2020.

3 CoreLogic, Inc. (2021). Real estate data, 2020. Accessed January 2021.


MAP3465418 | 02/2021

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