The American housing market took off during the early months of the COVID-19 pandemic. The homeownership rate – or the share of housing units occupied by their owner – jumped by 2.6 percentage points from the first quarter to the second quarter of 2020, by far the largest increase ever recorded. By the end of 2020, there were 2.1 million more homeowners in the United States than there were a year earlier.
The surge in home sales was fueled by several factors, including historically low mortgage rates, and, as many experts speculate, the pandemic, which led many Americans to re-evaluate where and how they live. Here is a look at the mortgage rate in America every year since 1972.
Nationwide, the homeownership rate stands at 64.4%, according to the latest American Community Survey data from the U.S. Census Bureau. This rate varies substantially from state to state, however.
Using census data, 24/7 Wall St. identified the states with the highest homeownership rates. States are ranked by the share of housing units occupied by their owners, from smallest to largest.
Depending on the state, homeownership rates range from 54.1% to 73.7%. Many states with the lowest homeownership rates are home to major urban centers with large rental markets, while many states with high homeownership rates have large rural populations.
Generally, in the states with the lowest homeownership rates home values tend to be high , making homeownership prohibitively expensive for larger shares of the population. In eight of the 10 states with the lowest homeownership rates, the median home value exceeds the $229,800 value of the typical American home. Here is a look at the 20 cities where the middle class can no longer afford housing.
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