New Fed research suggests far fewer Americans own homes than widely believed
New research from the Federal Reserve Bank of Minneapolis reveals that the actual rate of homeownership among U.S. adults sits at 53%, significantly lower than the widely accepted 65% figure reported by the U.S. Census Bureau.
The discrepancy stems from how homeownership is calculated. The traditional Census Bureau metric tracks whether a housing unit is owner-occupied. This creates a statistical gap where individuals living with homeowners—such as adult children residing with parents or roommates in an owned property—are counted as part of an owner-occupied household despite having no ownership stake themselves. Researchers estimate that 14% of U.S. adults fall into this category.
To address this, the Minneapolis Fed introduced the homeowners-to-population ratio, known as HPOP. This metric shifts the focus from housing units to individual ownership, providing a direct count of adults who own property. This change highlights that more than one in eight American adults inhabit owner-occupied homes without holding title to the residence.
The implications for policy design are significant. If policymakers rely on inflated census data, housing programs may fail to address the actual barriers preventing adults from purchasing property. Economic experts note that the new data exposes a deeper affordability crisis across the country than previously recognized.
State-level data confirms that the gap is consistent across the nation. In states with high housing prices like California and New York, the difference between the traditional rate and the HPOP metric is pronounced. In California, for instance, the HPOP reveals that only 41.2% of adults own homes, compared to the traditional 55.9% metric. This research suggests that housing access is tighter than current public records imply.