Economic uncertainty, limited housing inventory, and declining birth rates are changing the way Americans think about homeownership. At one point, owning your own home was an ordinary achievement for many adults; now, many renters still want to own, but steep financial barriers stand in the way.
To better understand this shift, it's helpful to look at homeownership rates over time. A homeownership rate is the percentage of owner-occupied households in a given city, state, country, or region. This statistic matters because it reflects current economic conditions and consumer sentiment.
Although several agencies, including the U.S. Department of Housing and Urban Development (HUD), track homeownership rates in the United States, the U.S. Census Bureau does most of the heavy lifting. Learn more about homeownership rates and what they tell us about the economy.
States with the highest homeownership rates
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As of mid-2025, these are the seven states with the highest homeownership rates. All data comes from the U.S. Census Bureau's Housing Vacancies and Homeownership reports.
- West Virginia (72%). West Virginia's high homeownership rate reflects the state's declining population, low median income, and low property taxes. Due to slow population growth, the demand for homes is low, reducing competition among local buyers.
- Delaware (76.8%). Delaware real estate isn't exactly cheap, but it tends to be more affordable than residential properties in nearby Maryland and New Jersey. This makes homeownership more accessible to Delaware residents. Additionally, Delaware doesn't have any large urban areas, so there are fewer rental properties available.
- Vermont (75.3%). Vermont is extremely rural, so it doesn't attract the same number of renters as states like California and New York. The Green Mountain State also has an older population. Older adults are more likely to buy than rent.
- Mississippi (74.9%). Like Vermont, Mississippi has many rural areas, which tend to have more owner-occupied properties than rental properties. The median home in Mississippi also costs less than half the national median, making homeownership more attainable.
- Wyoming (74.9%). Much of Wyoming is extremely rural, so the state has fewer than 6 million residents. This makes the demand for rentals much lower than it is in heavily populated states. Wyoming is also somewhat unique when it comes to building restrictions. Planning is regulated at the local level, so some areas have limited restrictions, making it easier to build new homes.
- Maine (74.2%). Maine has many rural areas, reducing the demand for rental housing. Like Vermont, Maine also has an older population. More than 218,000 of its 1.36 million residents are 60 or older.
States with the lowest homeownership rates
- Washington, D.C. (42.4%). Though not a state, the nation's capital has the lowest homeownership rate in the United States. This reflects the high cost of living. For example, home prices in Washington, D.C., are nearly double the national average. Additionally, the city attracts many government interns and other temporary workers. These individuals typically rent apartments rather than buy homes.
- New York (52.2%). New York has a unique mix of rural and urban areas, but its population is concentrated in New York City, one of the most expensive cities in the country. This makes homeownership unaffordable for many New Yorkers. The Empire State is also home to many colleges and universities, so many people live in dorms or rent housing near their campuses.
- California (55.3%). California has a median home value that's nearly double the national median. The Golden State also has restrictive zoning laws, reducing the number of single-family homes available for purchase. An increased number of natural disasters may make it more difficult to obtain homeowners' insurance, prompting some residents to rent instead of buy.
- Nevada (58.9%). Nevada relies on tourism for its economic health, so many of the people in the Silver State at any given time are only there temporarily. Most people also live in Las Vegas or Reno, both of which have plenty of rental properties available. The cost of living is nearly 10% higher than the national average, putting homeownership out of reach for some Nevadans.
- Oklahoma (60.6%). Oklahoma has a mix of rural and urban areas. In heavily populated areas, it's common to rent, reducing homeownership rates. Additionally, Oklahoma has a high number of federally recognized tribes. These tribes have jurisdiction over their lands, which affects the number of opportunities available to buy homes.
- Hawaii is unique because it's separated from the continental United States by the Pacific Ocean. This makes it extremely expensive to transport goods to Hawaiians, increasing the overall cost of living. In fact, Hawaii has a that's 65.7% higher than the national average. A popular destination for billionaires, just 37 ultra-wealthy individuals own 11% of Hawaii’s private land, a 2024 report found, reducing housing supply and driving up prices. Hawaii also has a significant amount of protected land, further limiting the supply.
Key factors that affect homeownership by state
It's important to understand how certain factors affect rates of homeownership in the United States:
- Median income and employment rates. To qualify for a mortgage, you need a steady job with enough income to cover the principal, interest, taxes, and insurance.
- Housing affordability (price-to-income ratio). It's easier to purchase a home in a city that has a low price-to-income ratio. This reflects the city's median home price divided by its median household income.
- Property taxes and cost of living. Housing is only one part of your budget. You also need to cover the property taxes and keep up with your other expenses. It's more difficult to do this in states with high costs of living.
- Urban vs. rural population. Rural areas tend to have lower housing prices due to reduced demand, making homeownership more accessible.
- Age demographics and population migration trends. Older people are more likely than younger people to own homes. Homeownership rates are also likely to be lower in states with declining populations.
- Climate. Climate change has made it more expensive to own homes in some areas due to rising insurance rates and increased costs associated with disaster cleanup.
- Job opportunities. States with plenty of job opportunities tend to have higher rates of homeownership because steady jobs enable residents to buy homes instead of continuing to rent.
- Zoning laws. Zoning laws affect the number of homes constructed each year, which may result in lower homeownership rates due to inadequate supply.
What homeownership rates say (and what they don't say)
Homeownership rate is a useful statistic, as it can reflect housing affordability and the relative amount of wealth in a state. However, homeownership rates don't tell the whole story.
Historically, due to federal redlining and other forms of systemic racism, white households have owned homes at a much higher rate than Black households. Additionally, not all citizens have the same access to credit. It's difficult to qualify for a mortgage if you have a variable income or work in an unstable industry.
Housing policy also plays a significant role in determining the number of homes available. For example, restrictive zoning laws may prevent builders from constructing new homes.
If you're interested in homeownership, that's great. Just remember that owning a home doesn't say anything about your value as a person. Additionally, owning isn't always better, especially if you travel frequently or want extra flexibility.