Rental vacancies rose in recent months as the U.S. homeownership rate rebounded from a second-quarter slide, new quarterly figures from the U.S. Census Bureau show.
The nationwide rental vacancy rate grew to 7.1% in the third quarter, up from 6.9% one year ago and 7% in the second quarter.
Meanwhile, the homeownership rate rose to 65.3% from July through September, below the Census Bureau’s reading of 65.6% observed in the third quarter of 2024 but improving upon the 65% homeownership rate recorded from April through June.
“Persistent affordability challenges and a shortage of reasonably priced homes have kept the rate from rising more meaningfully,” said Hannah Jones, an economist for listings platform Realtor.com, in a recent analysis of the newly published census data.
The median U.S. household income was only sufficient to purchase a home in 128 metropolitan areas, down from 287 in 2019, a fact that congressional leaders highlighted in new legislation unveiled on Friday designed to address the challenges Jones identified.
President Donald Trump has identified the housing affordability crisis as a key policy issue his administration is attempting to solve, mulling the declaration of a national housing emergency.
Trump signed an executive order on the first full day of his second term directing federal agencies to deliver “emergency price relief” to lower the cost of housing and expand the housing supply.
Separately, however, the president last week labeled persistent affordability challenges hitting household budgets — housing and otherwise — a “hoax” orchestrated by Democrats.
A surge of multifamily construction coming out of the pandemic has led to notable growth in rental units nationwide, softening price pressures in markets across the U.S. Average annual rent bills still remain as much as $7,300 higher than 2019 levels, however, according to real estate analytics firm Cotality.
After peaking at more than 69% in the fourth quarter of 2004, the U.S. homeownership rate declined for more than a decade in the aftermath of the 2008 financial crisis, landing at 62.9% in the second quarter of 2026.
Over the decade since, the homeownership rate has trended upward, spiking to 67.9% in the second quarter of 2020 before settling around 65% range after the COVID-19 pandemic.
Regional variations in housing supply influence regional variance in rental vacancies, Jones also noted.
The highest third-quarter rental vacancy rate was observed in the South, at 9.1%, followed by the Midwest (6.4%), West (6%) and Northeast (5%). On an annual basis, rental vacancies declined in the Northeast and Midwest, while rising in the South and West.
Na Zhao, principal economist at the National Association of Homebuilders (NAHB) said in a research brief that the latest housing vacancy data “continues to reflect significant affordability challenges,” noting that the third-quarter homeownership rate remains below a 25-year average of 66.3%.
Zhao’s analysis of the data showed that homeownership rates rose annually for three distinct age groups.
Home seekers under 35 years old — who tend to be more sensitive to affordability constraints like elevated mortgage rates and a lack of affordable entry-level inventory — observed an increase of 0.5% to a homeownership rate of 37.5% during the third quarter.
Homeownership rates for U.S. residents ages 45 to 54 rose 0.3% over the year to land at 70% in the third quarter, while householders ages 55 to 64 posted a 0.1% increase to 76%.
Homeownership rates declined 1.2% year over year for both the 35- to 44-year-old age group and those age 65 and older.
