AI Generated Image
Fewer People Than You Think May Own Homes
Newser • • business
Key Points:
- A new metric developed by Federal Reserve economist Erik Hembre suggests the US homeownership rate is 53%, significantly lower than the commonly cited 65%.
- The homeowners-to-population ratio (HPOP) counts adults 18 and older who live in homes they personally own, revealing a more accurate picture of ownership.
- The traditional homeownership rate overestimates ownership by including adults living in someone else's owner-occupied home, such as grown children with parents or elderly parents with adult children.
- Hembre's metric shows that only 22% of adults under 35 own homes, compared to 37% by the traditional measure, highlighting greater challenges for younger people in buying homes.
- This refined approach provides a clearer understanding of housing dynamics, especially among younger adults, than previous aggregate homeownership statistics.
