U.S. homeowner count drops for first time since 2016

The number of U.S. households that own their homes fell in the second quarter for the first time in nearly a decade, according to a report released Tuesday by Redfin.

Homeowner households declined 0.1% from a year earlier to an estimated 86.2 million.

Meanwhile, renter households rose 2.6% to 46.4 million, one of the largest increases in recent years, Redfin said, citing U.S. Census Bureau data.

“America’s homeowner population is no longer growing because rising home prices, high mortgage rates and economic uncertainty have made it increasingly difficult to own a home,” said Chen Zhao, Redfin’s head of economics research. “People are also getting married and starting families later, which means they’re buying homes later — another factor that may be at play.”

The median U.S. home sale price in July increased 1.4% from a year earlier to $443,867, the highest level on record for that month.

Mortgage rates averaged 6.56% — more than double their pandemic-era lows.

Redfin said the shift means more Americans are continuing to rent rather than purchase, forgoing the equity that typically comes with homeownership.

Southern metros dominated the top 10 among 75 areas ranked in the report according to homeownership rate — with North Port, Fla. (79.5%), and Baton Rouge, La. (78.6%), setting the nationwide pace.

Mortgage rates have edged down in recent weeks from a high of more than 7% at the start of the year, prompting some renewed buyer activity, the report noted.

The overall homeownership rate stood at 65% in the second quarter — down slightly from 65.6% a year earlier. The rental rate increased to 35%, up from 34.4%.

Redfin’s full report can be found here.