Homeownership rate in the U.S. 2021, by age

The homeownership rate among Americans under 35 years was 37.8 percent in the second quarter of 2021. In contrast, almost 80 percent of those aged 65 and older owned their home. The homeownership rate is the proportion of occupied households which are occupied by the owners. This reached its peak in 2004 before the 2007-2009 recession hit and decimated the housing market. The rate continued to fall until 2016, but has begun to increase again since then.

Why are younger Americans less likely to own their home?

The generational differences in homeownership can be explained by the fact that younger generations typically don’t have sufficient savings for down payments yet, whereas older people have worked for longer and have more savings. Student debt is a major obstacle to buying a home for Gen Zers and Millennials, because they often don’t have money to spare for long-term savings after they have made their student debt payments. According to a 2019 analysis, the existence of student debt prolonged the down payment savings process by several years.