Fewer Americans own homes than thought, new Fed search finds
Summary
A new study by the Federal Reserve Bank of Minneapolis shows that only about 53% of U.S. adults actually own homes, which is much lower than the commonly reported 65% homeownership rate. The traditional measure counts homes as owned if someone in the household owns the home, even if some adults living there do not own it themselves.Key Facts
- The usual homeownership rate counts the share of homes where the owner lives, not the share of adults who own homes.
- The new Federal Reserve measure, called the homeowners-to-population ratio (HPOP), counts the percentage of adults who own a home.
- About 14% of U.S. adults live in owner-occupied homes but do not themselves own the home.
- These adults can include grown children living with parents, relatives living together, or roommates.
- According to the HPOP, only 53% of U.S. adults own homes, less than the 65% rate commonly cited.
- The new measure shows homeownership is lower in every state, especially in states with high housing costs like California and New York.
- Policymakers might need to reconsider strategies since the traditional data overestimates actual homeownership.
- The new measure highlights how difficult it has become for many Americans to buy homes.
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