The U.S. real estate market took off in the early months of the COVID-19 pandemic. The homeownership rate – or share of owner-occupied housing – jumped 2.6 percentage points between the first and second quarters of 2020, by far the biggest increase on record. At the end of 2020, there were 2.1 million more homeowners in the United States than there were a year earlier.
The surge in home sales has been fueled by several factors, including historically low mortgage rates and, as some experts speculate, the pandemic, which has led many Americans to reassess where and how they live. Here’s a look at the mortgage rate in America every year since 1972.
Nationally, the homeownership rate stands at 64.4%, according to the latest data from the US Census Bureau’s American Community Survey. However, this rate varies widely across the country, from state to state, and from city to city.
Using census data, 24/7 Wall St. identified the metropolitan area in each state with the lowest homeownership rate. Metropolitan areas are ranked according to the share of owner-occupied dwellings.
It’s important to note that four states – Delaware, New Hampshire, Rhode Island and Vermont – each have only one metropolitan area, and that one ranks as having the highest homeownership rate default lowest only. Among the places on this list, homeownership rates range from 48.7% to 70.6% and are lower than the state’s homeownership rate in almost all cases.
Home ownership can be expensive, and in most metro areas on this list, the typical household earns less than the statewide median household income. The low incomes of these areas can make home ownership less affordable for a larger portion of the population. Here’s a look at the 20 cities where the middle class can no longer afford housing.
Many metropolitan areas on this list are home to large colleges or universities. Because a large portion of the population of college towns resides there temporarily, the transient population is more likely to rent a house than to buy one. These locations include New Haven, Connecticut, home to Yale University; Ann Arbor, Michigan, home of the University of Michigan; and Ames, Iowa, home to Iowa State University.
Click here to see the metro area with the lowest homeownership rate in each state
Click here to read our detailed methodology