From Wikipedia, the free encyclopedia
The homeownership rate in the United States
 in 2008 remained similar to
that in other post-industrial nations[3
] with 67.8% of all occupied housing units being
occupied by the unit's owner. Home ownership rates vary depending
on demographic characteristics of households such as ethnicity,
race, type of household as well as location and type of settlement.
Since 1960, the homeownership rate in the United States has
remained relatively stable having increased 6.8% since 1960 when
62.1% of American households owned their own home. However,
homeowner equity has fallen steadily since WWII and is now less than 50%
of the value of homes on average.
Homeownership was most common in rural areas and suburbs with three
quarters of suburban households being homeowners. Among the
country's regions the Midwestern states had the
highest homeownership rate with the Western
states having the lowest.
 Homeowners in the United
States also tend to have higher incomes
and households residing in their own home were more likely to be
families (as opposed to individuals) than were their tenant
 Among racial demographics,
Americans had the country's highest homeownership rate, while
those identifying as being African American had the lowest
In the US, the homeownership rate is created through the
Housing Vacancy Survey by the US Census Bureau. It is
created by dividing the owner occupied units by the total number
of occupied units. This is an important point to understand changes
in the homeownership rate over time. The bust of the housing bubble resulted in
many houses becoming foreclosed. However, the decrease in the
homeownership rate from 3Q2007 to 4Q2007 was mostly a result of an
increase in the renter's population and less due to a decrease in
the homeowner population.
Home ownership has been promoted as government policy using
several means involving mortgage debt. The existence of the government sponsored entities: Freddie Mac, Fannie Mae, and the Federal Home Loan Banks fund or
guarantee $6.5 trillion of assets with the purpose of directly or
indirectly promoting home ownership. Home ownership has been
further promoted through tax policy which allows a tax deduction for
mortgage interest payments on a primary residence. The Community Reinvestment Act
also encourages home ownership for low-income earners. Because home
ownership has been promoted by the government through encouraging
mortgage borrowing and lending, this has given rise to debates
policies and the subprime mortgage crisis.
Homeownership rate according to race.
Homeownership rate by race from 1994 to 2005.
Homeownership rate, as well as the fluctuations within it,
varied significantly with race.
 While homeowners constitutes the
majority of White, Asian and Native American
households, the homeownership rate for African Americans and those
identifying as Hispanic or Latino fell short of the fifty percent
threshold. Whites had the highest homeownership rate, followed by
Asians and Native Americans.
As of 2005, African Americans had once again the
lowest homeownership rate in the country. Hispanics had the lowest
homeownership rate in the country in ten out of twelve years
between 1993 and 2005. Only in 2002 and 2005 did the homeownership
rate for Hispanics exceed that of African Americans. Chronicle
fluctuations were slight however for all races, commonly not
changing more than two percentage points per year. The strongest
fluctuation in the percentage of homeowners was among non-White
minorities. The homeownership for minorities approached the sixty
percent mark in 2005, which was a significant achievement because
less than half of all minority households owned homes as recently
as 1994. The ownership rate for minorities increased by 24.1%, from
47.7% in 1993 to 59.2% in 2005. The increase among White Americans
was less substantial. In 2005, 75.8% of White Americans owned their own homes,
compared to 70% in 1993. Thus one can conclude that despite a large
remaining discrepancy between the homeownership rates among
different racial groups, the gap is closing with ownership rates
increasing more substantially for minorities than for Whites.
||% change since '94
|Hispanic or Latino
SOURCE: US Census Bureau, 2005
Homeownership rate according to type of household.
There is a strong correlation between a household's family
structure, type as well as the age of and homeownership.
 Overall married couple
families, which also have the highest median income of
any household type, were most likely to own a home, while female
singles, who had the lowest median income of
any household type were least likely to own a home. Age played a
significant role as well with homeownership increasing with the age
of the householder until age when 65, when a slight decrease
becomes visible. While only 43% of households with a household
under the age of thirty-five owned a home, 81.6% of those with a
householder between the ages of 55 and 64 did. This means that
households with a middle-aged householder were nearly twice
as likely to own a home as those with a young householder. Overall
families with a householder age 70 to 74 had the highest
homeownership rate with 93.3% being homeowners. The lowest
homeownership rate was recorded for single females under the age of
twenty-five of whom only 13.6%, were homeowners. Yet, single
females had an overall higher homeownership rate than single males
and single mothers.
Housing characteristics according to income in 2002.
There are considerable correlations between income, homeownership rate
and housing characteristics. As income is closely linked to social status, sociologist Leonard Beeghley has made the
hypothesis that "the lower the social class, then the fewer
amenities built into housing." According to 2002, US Census Bureau
data housing characteristics vary considerably with income. For
homeowners with middle-range household incomes, ranging from
$40,000 to $60,000, the median home value was $112,000, while the
median size was 1,700 square feet (160 m2) and
the median year of construction was 1970. A slight majority, 54% of
homes occupied by owners in this group had two or more bathrooms.
Among homeowners with household incomes
in the top 10%, those earning more than $120,000 a year, home
values were considerably higher while houses were larger and newer.
The median value for homes in this demographic was $256,000 while
median square footage was 2,500 and the median year of construction
was 1977. The vast majority, 80%, had two or more bathrooms.
Overall, houses of those with higher incomes were larger, newer,
more expensive with more amenities.
US Homeownership Rate, 1960-2005.
||Home ownership rate
^ "US Census Bureau,
Homeownership by Area". http://www.census.gov/hhes/www/housing/hvs/annual08/ann08t14.xls. Retrieved
b "US Census Bureau,
Homeownership in the United States, 1960-2004". http://www.census.gov/hhes/www/housing/hvs/annual05/ann05t12.html. Retrieved
b "EU homeownership rates,
2002". http://www.sigov.si/umar/conference/2005/papers/Doling.pdf. Retrieved
- ^ Federal Reserve report shows
homeowner equity dipping below 50 percent, lowest on record,
SignOnSanDiego.com, URL accessed 28 December 2008
^ "US Census Bureau,
distribution of homeowners among the income quitniles". http://pubdb3.census.gov/macro/032005/hhinc/new05_000.htm. Retrieved
e "US Census Bureau,
homeownership by race". http://www.census.gov/hhes/www/housing/hvs/annual05/ann05t20.html. Retrieved
c "US Census Bureau,
homeownership according to age and type of household". http://www.census.gov/hhes/www/housing/hvs/annual05/ann05t15.html. Retrieved
^ Beeghley, Leonard
(2004). The Structure of Social Stratification in the United
States. Boston, MA: Pearson.
^ "US Census Bureau,
homeownership rate since 1960". http://www.census.gov/hhes/www/housing/hvs/annual05/ann05t12.html. Retrieved
|Demographics of the
|Economic and social
Major examples: Arab and Middle Eastern Americans · Black Americans (African
immigrants, Afro-Caribbeans, etc.) · Asian Americans (Chinese
Americans, Filipino Americans, Indian
Americans, Japanese Americans, Pacific Islander Americans,
etc.) · Hispanic and Latino
Americans (Mexican Americans, Puerto Ricans in the
United States, Cuban Americans, etc.) · White Americans (European
Americans, Jewish Americans (by
ethnic origin), etc.) · Multiracial Americans · Native Americans
Natives, Native Hawaiians, etc.)