Special Report

How the Homeownership Rate in Massachusetts Compares to Other States

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 five-year estimates from the 2020 American Community Survey data from the U.S. Census Bureau. This rate varies substantially from state to state, however.

In Massachusetts, the homeownership rate stands at 62.5%, lower than the national average.

Homeownership rates in different parts of the country are impacted by many factors, and one of them is housing costs. Though it is not always the case, states where housing is more expensive often have lower than average homeownership rates, while areas where home prices are lower often have high homeownership — and Massachusetts is no exception. The typical home in Massachusetts is worth an estimated $398,800, more than the national median of $229,800.

 

Rank State Homeownership rate (%) Median home value ($) Median household income ($)
1 West Virginia 73.7 123,200 48,037
2 Maine 72.9 198,000 59,489
3 Minnesota 71.9 235,700 73,382
4 Michigan 71.7 162,600 59,234
5 Delaware 71.4 258,300 69,110
6 Vermont 71.3 230,900 63,477
7 Iowa 71.2 153,900 61,836
8 New Hampshire 71.2 272,300 77,923
9 Wyoming 71.0 228,000 65,304
10 Idaho 70.8 235,600 58,915
11 Utah 70.5 305,400 74,197
12 South Carolina 70.1 170,100 54,864
13 Indiana 69.5 148,900 58,235
14 Alabama 69.2 149,600 52,035
15 Pennsylvania 69.0 187,500 63,627
16 Mississippi 68.8 125,500 46,511
17 Montana 68.5 244,900 56,539
18 South Dakota 68.0 174,600 59,896
19 New Mexico 68.0 175,700 51,243
20 Kentucky 67.6 147,100 52,238
21 Missouri 67.1 163,600 57,290
22 Wisconsin 67.1 189,200 63,293
23 Maryland 67.1 325,400 87,063
24 Virginia 66.7 282,800 76,398
25 Louisiana 66.6 168,100 50,800
26 Tennessee 66.5 177,600 54,833
27 Ohio 66.3 151,400 58,116
28 Illinois 66.3 202,100 68,428
29 Kansas 66.2 157,600 61,091
30 Nebraska 66.2 164,000 63,015
31 Florida 66.2 232,000 57,703
32 Colorado 66.2 369,900 75,231
33 Oklahoma 66.1 142,400 53,840
34 Connecticut 66.1 279,700 79,855
35 Arkansas 65.8 133,600 49,475
36 North Carolina 65.7 182,100 56,642
37 Arizona 65.3 242,000 61,529
38 Alaska 64.8 275,600 77,790
39 New Jersey 64.0 343,500 85,245
40 Georgia 64.0 190,200 61,224
41 Washington 63.3 366,800 77,006
42 Oregon 62.8 336,700 65,667
43 Massachusetts 62.5 398,800 84,385
44 North Dakota 62.5 199,900 65,315
45 Texas 62.3 187,200 63,826
46 Rhode Island 61.6 276,600 70,305
47 Hawaii 60.3 636,400 83,173
48 Nevada 57.1 290,200 62,043
49 California 55.3 538,500 78,672
50 New York 54.1 325,000 71,117

 

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