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You'll Never Guess How Many Americans Own Their Own Homes
Published on Dec. 31, 2023

Christy Bieber
By: Christy Bieber

Writer

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KEY POINTS

More than half of all Americans own their own homes.
Owning a home can help you build wealth, but only if you make smart
choices about what you buy and how much you spend.
Check out our picks for the best mortgage lenders

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).

More: Check out our picks for the best mortgage lenders

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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OUR RESEARCH EXPERT
Christy Bieber
Christy Bieber
Christy Bieber is a full-time personal finance and legal writer with 15
years of experience. She has a JD from UCLA and is a former college
instructor.