New Homeownership Rate Method Reveals Lower Ownership Rates Across US

The traditional way of measuring homeownership rates in the US may be giving a skewed picture. The Federal Reserve Bank of Minneapolis has developed a new method, called the homeowners-to-population ratio (HPOP), to count the number of adults who own their homes.

This approach differs from the conventional method, which counts how many homes are occupied by their owners. According to this new method, the national homeownership rate falls to about 53% compared to the traditional rate of around 65%. This discrepancy is more pronounced in areas with high housing costs, where adults may be more likely to share housing costs.

The researchers behind HPOP suggest that this data can inform policy discussions on housing accessibility, homeownership programs, and land-use regulations. They also point out that the traditional method lumps together all adults in a household as either renters or owners, missing those who pay rent but are not fully captured by standard designations.