For the first time since 2016, the U.S. homeowner population declined on a quarterly basis, as affordability challenges glued sidelined homebuyers into their rental housing.
According to a recent Redfin analysis of U.S. Census Bureau data, the number of renter households slipped 0.1% year over year in the second quarter while the number of renter households rose 2.6% — one of the largest increases in recent years, per Redfin.
“America’s homeowner population is no longer growing because rising home prices, high mortgage rates and economic uncertainty have made it increasingly difficult to own a home,” said Chen Zhao, head of economics research at the digital brokerage.
A renter household is defined as one where the head of the household reports to the Census that they are renting out the property, while a homeowner household is one where the head of household reports they own the property.
The number of homeowner households reached an estimated 86.2 million in the second quarter while the number of renter households reached an estimated 46.4 million. That equates to a 65% homeownership rate during the second quarter, down slightly from the 65.6% rate the prior year.
“People are also getting married and starting families later, which means they’re buying homes later — another factor that may be at play,” Zhao added.
Despite the second quarter’s declining number of homeowner households, signs of improving affordability have emerged. National home prices have softened as for-sale inventory has increased and mortgage rates have declined from roughly 7% at the start of 2025.
Among the 75 largest U.S. metropolitan areas analyzed by Redfin, the highest homeownership rates were observed in the following markets in the second quarter: North Port, Fla. (79.5%); Baton Rouge, La. (78.6%); Charleston, S.C. (76.9%); Cape Coral, Fla. (74%); and Albuquerque, N.M. (73.5%).
The highest rentership rates were observed in Los Angeles (53.6%), New York City (50.6%), San Diego (48.3%), Las Vegas (47.7%) and San Jose, Calif. (46.1%).
