A new report from Redfin indicates the number of Americans buying homes has stagnated for the first time in almost a decade.
The number of homeowner households dropped by 0.1 percent year over year in the second quarter—the first time since 2016. Although an estimated 86.2 million people own homes, the number of renters nationally grew by 2.6 percent to an estimated 46.4 million—one of the largest increases in many years.
“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,” Chen Zhao, Redfin’s head of economics research, said in a company statement.
“People are also getting married and starting families later, which means they’re buying homes later—another factor that may be at play.”
Redfin reported America’s median home price at $443,867 in July—a 1.4 percent year-over-year increase and the highest July price on record. As of Aug. 28, Freddie Mac reported an average mortgage rate of 6.56 percent, which more than doubles the all-time low recorded during the COVID-19 pandemic.
“As a result, more Americans have opted to keep renting rather than buying a home, meaning more people are forgoing home equity—a key way to build wealth,” the report stated.
Although the number of U.S. homeowners has fallen, the report indicates that the home ownership rate has remained somewhat steady at 65 percent during the second quarter. In 2024, that rate was slightly higher at 65.6 percent.
Renters comprise 35 percent of the population, up from 34.4 percent in 2024.
Comparing the nation’s 75 largest metropolitan areas, North Port, Florida, leads the country in home ownership at 79.5 percent. As of July, Redfin reported the median sales price of a single-family home in North Port at $342,000—a 6 percent year-over-year decline.
Baton Rouge, Louisiana, took the second place for home ownership, at 78.6 percent, with a median sales price of $238,570—a 13.6 percent year-over-year increase. Third place goes to Charleston, South Carolina, at 76.9 percent, with a median home price of $585,000, reflecting a 10 percent year-over-year decrease.
Other top home ownership metropolises include Cape Coral, Florida, at 74 percent; Albuquerque, New Mexico, at 73.5 percent; and Rochester, New York, at 73 percent.
Rounding up the top 10 metros with homeownership at more than 70 percent are Indianapolis, Indiana; Phoenix and Tucson, Arizona; Cleveland, Ohio; and Virginia Beach, Virginia.
California and New York topped the list for the highest percentage of renters and the lowest percentage of homeowners. Los Angeles leads the nation in renters at 53.6 percent, followed by New York City at 50.6 percent.
Both Los Angeles and New York City reported home ownership of under 50 percent. As of July, the median home price stood at $1.06 million in Los Angeles and at $1.32 million in Manhattan, the priciest of New York City’s five boroughs.
According to September data from Apartments.com, the average rent in New York City is one of the highest in the nation, at $4,037 per month, giving renters about 600 square feet. This compares to the national rental average of $1,639 per month. Studios in the Big Apple can cost more than $3,000 a month, while two-bedroom apartments can command more than $5,500 each month.
Other high-rental metros include the California cities of San Diego, San Jose, and San Francisco—all at more than 45 percent—and Las Vegas with a 47.7 percent rental rate. Completing the top 10 rental-proportion list are Oklahoma City, Miami, Honolulu, and Austin, Texas.
