BY MIRABEL ODETA
A new economic analysis is challenging one of the nation’s most frequently cited housing statistics, suggesting that the traditional homeownership rate paints an incomplete picture of how many Americans actually own the homes where they live.
Researchers found that while the United States homeownership rate is widely reported at about 65%, the percentage of adults who personally own the homes they occupy is significantly lower. When measured on an individual basis rather than by household, only about 53% of American adults are homeowners.
The difference stems from how homeownership has traditionally been measured. The commonly reported figure reflects the percentage of occupied housing units that are owner-occupied, meaning someone living in the home owns it. However, that measurement does not distinguish between the actual homeowner and other adults living in the same residence who do not hold ownership rights.
According to the analysis, nearly 14% of American adults live in owner-occupied homes without owning the property themselves. This includes millions of adult children living with parents, extended family members, relatives, and other adults sharing housing with homeowners.
Researchers argue that relying solely on household-based homeownership statistics can create a misleading impression of Americans’ financial well-being, especially among younger generations facing increasingly difficult housing markets.
To address this issue, the study introduces a new measurement known as the Homeowners-to-Population Ratio, or HPOP. Rather than counting housing units, the measure focuses on individuals, calculating the percentage of adults who actually own the home in which they live.
The findings reveal a much wider homeownership gap among younger Americans. While traditional housing data suggests that approximately 37% of households headed by someone under the age of 35 own their homes, the people-based measure shows that only about 22% of adults in that age group are homeowners.
The disparity reflects changing living arrangements across the country, with many young adults delaying home purchases because of rising home prices, elevated mortgage rates, student loan obligations, and the increasing cost of living.
The report comes as more young Americans continue living with parents or other family members well into adulthood. Recent housing trends indicate that roughly one-third of adults under 35 now live with their parents, representing the largest number recorded in recent years.
Researchers say these living arrangements can significantly inflate traditional homeownership statistics because every adult residing in an owner-occupied home is effectively counted within a homeowner household, even if they have no ownership interest in the property.
The analysis also found notable differences among states. Every state recorded a lower people-based homeownership rate than its traditional owner-occupancy rate, although the size of the gap varied considerably.
Hawaii showed the largest difference. While nearly 62% of occupied housing units in the state are owner-occupied, only about 43% of adults actually own the homes where they live. The nearly 19-percentage-point gap reflects the state’s exceptionally high housing costs and the greater likelihood that multiple generations or unrelated adults share the same home.
Delaware and New Mexico also recorded sizable gaps between traditional homeownership statistics and the individual ownership measure, highlighting similar affordability challenges that encourage shared living arrangements.
At the opposite end of the spectrum, North Dakota recorded the smallest difference between the two measurements, with less than a four-percentage-point gap. Researchers attribute that result to relatively affordable housing and a smaller percentage of young adults living with parents or other family members.
Housing affordability emerged as one of the strongest factors influencing the gap between household ownership rates and individual ownership rates. In states where homes are more affordable, adults are generally able to purchase homes earlier in life, reducing the number of adults living in owner-occupied homes without actually owning them.
However, researchers emphasize that affordability is only one factor shaping living arrangements. Marriage, caregiving responsibilities, multigenerational households, cultural traditions, economic uncertainty, and parents helping adult children reduce housing expenses also contribute to the growing number of adults sharing homes with family members.
As housing costs remain elevated across much of the country, economists believe person-based measurements such as the Homeowners-to-Population Ratio may provide policymakers with a clearer understanding of the challenges facing prospective homebuyers.
The study concludes that measuring homeownership at the individual level offers a more accurate picture of wealth building, housing access, and economic opportunity, particularly for younger adults who increasingly face barriers to purchasing a home despite living in owner-occupied households.
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