20 Fascinating facts about home ownership in the United States.
What percentage of people in the U.S. do you think own their own home? Has that number gone up or down in the last 30 years? What age group owns their home more than any other? What states have the highest and lowest home ownership rates, and how does the U.S. measure up against the rest of the world?
When it comes to real estate, perception sometimes pushes consumer behavior more than facts. So these are some of the questions we set out to answer as we crunch the numbers on home ownership. You may be surprised what we found!
We combed through numerous articles, reports and credible sources like the U.S. Census Bureau, Pew research reports, CNN, and Realtor.org to come up with these 20 interesting and illuminating statistics:
1. The U.S. homeownership rate, as per Q1 of 2015, is 63.7%, the lowest it’s been since 1990.
2. Home ownership was at an all-time high of 69.2% in 2004, well before the credit bubble burst in 2008.
3. To put it in perspective, the lowest point of home ownership was in 1960 and 1961 in the 62% and change range, but it’s never dipped anywhere near 62% again.
American home ownership rates:
4. The median value of a home has risen every decade throughout U.S. history since 1940. Even though home values took a temporary hit with the real estate crunch from 2008-2010, the median value was at an all time high as of 2010, at $179,900.
5. Out of the 45 top countries, the U.S. sits #34 for home ownership rates.
Surprisingly, Romania has a 96.6% homeownership rate and Lithuania 91.9%, among many other Eastern European countries at the top of the list. 90% of people in China own their own home, India 86.6%, Russia 84%, Mexico 80%, Iceland 77.3%, Brazil and Italy 74.1%, Sweden 70.1%, Canada 69%, Australia at 67%, and the United Kingdom 66.7% right above the U.S., among others.
6. Of all U.S. homes, exactly two-thirds, 66.9%, are owner-occupied, and the others are rentals.
7. The U.S. counties with the highest average home values are:
Manhattan, NY $812,300
Marin, CA $759,300
San Francisco, CA $737,300
San Mateo, CA $710,100
Teton, WY $705,600
8. The U.S. counties with the lowest average home values are:
Lechter, KY $56,900
Willacy, TX $50,500
Coahoma, MS $54,700
Harlan, KY $54,400
McDowell, WV $39,000
9. Of adults 35 and younger, 36% own their own home.
35-44 years old: 59.1%
45-54 years old: 70.1%
55-64 years old: 76.6%
65+: 80% own a home!
10. Every state in the U.S. has a home ownership rates over 50%.
11. The states with the highest home ownership rates:
West Virginia 76.2%
New Hampshire 74.2%
12. The states (and district) with the lowest home ownership rates:
New York 53.8%
District of Colombia 45.3%
13. New homeowners purchase more products and services in the first six months after moving than an established resident spends in a two-year period.
14. The housing sector directly accounted for approximately 14 percent of total economic activity in 2009, but that has fallen dramatically. Still, about 40 percent of monthly consumer expenditures are housing related.
15. Today, the average size of a home is 2,224 square feet. Compare that to the average size of 1,650 square feet in 1978!
16. With all of that extra room, do we have bigger families and more people staying in each household? Nope! These days, the average family size in a household is 3.15, but back in 1978 it was bigger, with 3.33 person per household!
17. 2012 Pew survey found that 86 percent of Americans now believe the key to a middle class life is a secure job, and only 45% say the same about owning a home. in 1991, 70% of respondents in a CNN/Time/Yankelovich Partners poll said home ownership was essential to membership in the middle class membership, while only about 50% said it was a white-collar job.
18. A recent survey states that 51% of people said the bust did not change their willingness to buy a home and an additional 27% said it actually made them more likely to do so. That’s about 78% of the population who want to hold keys to their own front door.
19. 86% of those surveyed, list the income-tax benefits of owning a home as a big reason to buy. Being able to choose a good school system for their kids, privacy, and being free to fix up their home as they wish were also important factors.
20. Nearly two-thirds of people surveyed still believe purchasing a house is a safe investment. In fact, 81% of those surveyed either currently own a home and want to keep being homeowners in the future, or currently rent but plan on buying within the next ten years.