12 BuildersOutlook 2024Issue10
MARKET SNAPSHOT
Younger Households : Lowest Homeownership Rate Since 2020
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 .
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 ).
The U . S . homeownership rate held steady at 65.6 % in the third quarter of 2024 , showing a flat trend over the last three quarters . However , this marks the lowest rate in the last two years . The homeownership rate remains below the 25-year average rate of 66.4 %.