California Homeownership Rate Plummets Below National Average
A new metric from the Federal Reserve reveals that California's housing affordability crisis is more severe than previously thought.
The Minneapolis Fed report, which accounts for adults living with parents, shows that only 41% of California adults own a home in 2025. This figure falls below the national average of 53%, placing California second to last in adult homeownership nationwide.
The traditional Census Bureau methodology reported a higher homeownership rate for California at 56%. However, the Minneapolis Fed's updated metric provides a more accurate representation of structural housing conditions by evaluating individuals rather than households.
Regions with exceptionally high housing costs naturally see larger proportions of adult children remaining in parental homes or sharing living quarters. The report highlights that high parental co-residence rates are linked to lower homeownership rates, and California is one of the top states in this regard.