New Way of Measuring Homeownership

• The Federal Reserve Bank of Minneapolis created a new metric called the homeowners-to-population ratio (HPOP).

• Instead of counting housing units, HPOP counts individual adults who actually own the home they live in.

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Example: If two parents own a home and their two adult children live there, the old method treats that house as fully owner-occupied.axios+1Under HPOP, only 2 of the 4 adults are owners, so the homeownership rate for that household is effectively 50%, not 100%.

What the new numbers show

• Traditional U.S. homeownership rate: 65% of homes are owner-occupied.

• HPOP: only 53% of adults actually own the home they live in.

For adults under 35 in 2024:

• Old method: 37% are counted as homeowners.

• HPOP: only 22% of adults under 35 truly own their homes.

So, young adult homeownership is much lower than we thought, and has dropped sharply compared with past decades.

Why fewer young adults own homes ~

More young adults live with parents

• About one-third of adults under 35 now live with their parents, roughly 33% in recent data.

• For ages 30–34, around 12–13% live with parents, up from about 7% in the early 2000s.

These adult children show up as non-owners under HPOP even though they live in owner-occupied homes, which pushes the real homeownership rate down.

High housing costs and student debt

• Home prices and rents have risen faster than incomes, making it harder for young adults to save for a down payment and qualify for mortgages.

• College is more common but far more expensive; inflation-adjusted college costs have grown much faster than entry-level wages since 1980, leaving many graduates with large debts and relatively modest starting salaries.

Because of this, money that could go toward a down payment often goes toward student loan payments instead.

Later and fewer marriages

• Marriage rates have dropped significantly, and people marry later; the share of 25–34-year-olds who are married fell from about two-thirds in 1980 to around one-third in recent years.

• Married couples are more likely to own homes because they can pool incomes and are more strongly motivated to buy a place together.

With more young adults single or delaying marriage, fewer are reaching the financial and social conditions that typically lead to buying a home.

Big takeaway for younger generations

• Homeownership isn’t disappearing, but access to it has shifted: more adults live in owner-occupied homes without being owners themselves.

• For Gen Z and younger millennials, the path to owning a home is longer and harder due to housing costs, student debt, and changing family and living patterns.