Younger households are typically more likely to rent than own homes. However, new data from the U.S. Census Bureau shows there has been a notable shift in recent years.
Over the five years ended last year, the ownership rate increased 3.7% for households under 35 years old and 3.2% for households between 35 and 44 years old, a relatively big jump.
The overall U.S. homeownership rate was also higher than pre-pandemic levels, reaching 65.9% in the second quarter compared to 64.6% in 2019. A recovery in homeownership has also been ongoing since 2016, with a particularly notable uptick in 2020 fueled by low mortgage rates and the onset of the pandemic, when many shifted living arrangements.
The rate-increase patterns were similar as those seen from 2016 to 2019 and from 2019 to 2022, with households aged under 44 driving the surges, even though as a group, they still had the lowest rates of homeownership.