BiggerPockets Daily Homeownership Rate Drops For the First Time Since 2016
Sep 6, 2025
For the first time in seven years, U.S. homeownership rates are dropping while renter households are increasing. High mortgage rates and climbing home prices are key factors in this shift. The podcast dives into the impact of these trends on rental demand and real estate markets. It also discusses the implications for wealth accumulation and the impending wealth transfer from baby boomers to millennials, signaling potential changes in the housing landscape.
AI Snips
Chapters
Transcript
Episode notes
Homeownership Declined While Renting Rose
- Homeowner households declined 0.1% year-over-year while renter households rose 2.6% in Q2, per Redfin analysis of Census data.
- Rising prices and ~6.56% mortgage rates are keeping more Americans renting and reducing owner growth.
Affordability Is The Primary Driver
- Redfin's Chen Zhao attributes the shift to affordability problems driven by high prices, elevated mortgage rates, and economic uncertainty.
- Mortgage rates above 6% and record median prices (about $443,000) are delaying purchases and household formation.
Regional Split In Ownership Trends
- Cities like Los Angeles and New York now have rentership above 50%, while North Port, FL, shows homeownership near 80%.
- Affordability pressures vary regionally and create persistent rental demand in some Sunbelt metros like Las Vegas.