Hardware Retailing The Industry's Source for Insights and Information
The homeownership rate saw a recent dip, declining to 65.1% in the first quarter of 2025, the lowest level since the first quarter of 2020, according to an analysis by the National Association of Home Builders.
Housing affordability is also at a multidecade low, with elevated mortgage interest rates and a limited housing supply as contributing factors.
Homeownership rates declined over the past year across all age groups but those aged 65 and older. The younger household homeownership rate for those under 35 rose to 36.6% in the Q1 2025 but this is still the lowest rate in the last six years.
The national vacancy rate increased to 7.1% for the first quarter of 2025, returning to pre-pandemic levels after years of a strained rental market. The homeowner vacancy rate remained at 1.1%.
The total count of households increased to 132.2 million in Q1 2025 from 131 million in 2024, due to renter household formation and owner-occupied households.
