You’ll Never Guess How Many Americans Own Their Own Homes

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More than 6 in 10 households are homeowners. Should you join them and purchase a home of your own? 

Homeownership has long been sold as the American Dream. While high mortgage rates and limited inventory may make that dream feel impossible, the reality is that many Americans already own their homes. You may be shocked at the number of households that live in a home of their own rather than renting.

Here’s how many Americans are homeowners

According to the Federal Reserve, the homeownership rate in 2022 was 66.1%, up slightly from 64.9% in 2021. While this may seem like a substantial number of people who own property, it’s 3 percentage points lower than the percentage of households who owned their own homes in 2004.

Unsurprisingly, homeowners are not distributed evenly among different age groups. Seniors aged 65 and over are far more likely to own their place compared with their younger counterparts. In fact, homeownership rates steadily climb with age, with those under 35 having by far the lowest rate of homeownership. This makes sense as older people have had more time to save and acquire the money, credit score, and income needed to qualify to buy a home.

There are also racial disparities, with white Americans significantly more likely to own their properties compared with people of color. While the ownership rate among white Americans was 72.7% in 2021, the homeownership rate among Black Americans was just 44%. Sadly, these disparities are largely caused by a legacy of racial discrimination, as well as by continued racial inequalities that persist to this day.

Should you become a homeowner yourself?

Joining one of the majority of Americans who own their own home may seem like an attractive prospect if you’re eager to set down roots.

Buying a home can be a smart financial investment as well, with homeowners typically ending up with a higher net worth than renters (although that may also be explained by the fact that people with more money and financial knowledge are also more likely to buy homes, so it’s only natural they have more assets).

But, purchasing a property isn’t always right for everyone. It makes sense to buy a home only if:

You plan to remain in the property for several years.It’s not significantly more expensive to buy than it is to rent a comparable property where you live.You can comfortably afford the mortgage payments, with total costs including your home loan not exceeding 30% of your income.You have money in savings to cover closing costs, moving expenses, and ongoing costs of being a homeowner, including handling maintenance and repairs.

If you’re in a strong financial position to do so, joining the majority of your fellow Americans in owning the place you live can be a good choice. Just remember to stick within your price range, research your mortgage options carefully, and buy a home for the right reasons — because you want to, not because you feel pressure to jump onto the bandwagon and do what other people are doing.

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