With housing affordability at a multi-decade low and top of mind for many across the country, the NAHB analyzed Census Bureau data to determine the rate at which the youngest households in the country are becoming homeowners. According to the analysis., the rate of homeownership among households under the age of 35 has dropped to its lowest level in four years, with higher mortgage rates and low levels of inventory cited as the major challenges for prospective first-time home buyers.
As the largest cohort of millennials reach peak homebuying years, it is important to take a closer look at homeownership rate for those under age 35. In general, young adults’ homeownership rates tend to follow a distinct pattern with respect to the overall homeownership rate, particularly in the top five districts with the highest homeownership rates and the bottom five with the lowest.
The top five districts with the highest young adults’ homeownership rate also have an overall homeownership rate above 80%. However, the share of young adults in the top two districts is relatively low. In New York’s 1st and 4th districts, 65% of young adults are homeowners, but they only make up only 8.9% and 9.8% of the overall population. Following that, Michigan’s 9th and 2nd districts have the third and fourth highest young adults’ homeownership rates above 60%.
Like the top five districts, the districts with the lowest young adult homeownership rates also tend to have lower overall homeownership rates. Among the bottom 15 districts, most are in New York and California, with only the 15th lowest in Washington, D.C. The West coast, in general, tends to have lower homeownership rates.
