The U.S. is seeing its first decline in homeownership since 2016. According to Redfin, a top real‑estate data firm, the number of people who own homes fell from 86.28 million in early 2024 to 86.19 million as of April 1, 2025. That drop of 0.1 percent marks the first time in almost a decade that housing ownership dipped.
The trend is part of a longer‑term rise that started after the 2008 financial crisis, when mortgage rates stayed very low and made buying a home more affordable. In 2016, the U.S. saw its lowest home‑ownership rate in years, with 74.36 million homeowners. The figure climbed steadily to 75.41 million in 2017, 78.01 million in 2018, and 78.42 million in 2019 before the recent dip.
Chen Zhao, head of economics research at Redfin, explains the shift. “Mortgage rates were low for more than a decade. They shot up in 2022 because of high inflation and aggressive rate hikes by the Fed. Those high rates have stayed for three years now, and that’s why we’re seeing the ownership rate fall again,” Zhao said.
Across the country, rents have risen, but many households still find renting cheaper than buying. The share of Americans who rent jumped from 34.9 % on January 1 to 35 % in the second quarter of 2025—a move Zhao attributes to the relative affordability of rent versus a home. While many families still feel rent‑burdened, renting is viewed as a better option for those who can’t yet afford a down payment.
Youth factors also play a role. More young adults are delaying marriage, children, and buying homes, which means they’re staying renters longer.
New York City: A Low Point
New York City’s home‑ownership rate is the second lowest among the nation’s 75 largest metro areas, standing at 49.4 % in the second quarter of 2025. Los Angeles trails behind at 46.4 %. In 2023, just over half of NYC residents (51.3 %) owned a home, with 50.6 % doing so in 2022. The figure fell to 47 % on New Year’s Day but has begun to climb again, reflecting a hopeful rebound for the city.
What’s Next?
With inflation cooling and the housing market stabilizing, home‑ownership trends could shift again. However, current mortgage rates and sky‑high real‑estate prices keep many Americans priced out of the market. The next years will tell whether the dip in 2025 is a temporary blip or the start of a prolonged change in U.S. homeownership patterns.
Source: New York Post
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