Minneapolis Fed Proposes New Homeownership Metric Revealing Lower Ownership Rate
The Federal Reserve of Minneapolis has proposed a new way to measure homeownership in America. According to their research, the current view of the housing landscape might be skewed by using a traditional method that counts everyone living in an owner-occupied home as a homeowner.
The researchers suggest measuring homeownership by the share of adult population that owns their homes, which they call the 'homeowners-to-population' (HPOP) ratio. This approach excludes people who live in the home but don't own it directly, such as parents or children living with homeowners.
This new methodology reveals a significant shift: while 65% of homes are owner-occupied, only 53% of U.S. adults own a home. The researchers argue that this approach 'puts people first' and provides a more nuanced view of homeownership.
The data shows wide discrepancies in homeownership rates across different states. For example, in Hawaii, 61% of homes are owner-occupied, but only 42.7% of adults own a home. In Florida, Maryland, New Mexico, and Delaware, similar disparities exist.