Federal Reserve Bank of Minneapolis introduces a new homeowners-to-population ratio to provide a more accurate measure of U.S. homeownership.

The Federal Reserve Bank of Minneapolis has introduced a new metric, the homeowners-to-population ratio (HPOP), to provide a more nuanced view of U.S. homeownership. While the traditional owner-occupancy rate is commonly cited at 65 percent, the HPOP reveals that the actual homeownership rate is 53 percent. The new measure accounts for all adults, including those living in group quarters like college dormitories and nursing homes. It also identifies adults who live in owner-occupied homes but do not own the property themselves, such as children living with parents or roommates. The administration announced that this person-level statistic offers a clearer picture of economic well-being than the household-level measure. The HPOP also highlights how housing costs affect ownership. In expensive states like Hawaii, the gap between owner-occupancy and HPOP is largest, as high costs encourage adults to share homes. Conversely, in affordable states like North Dakota, the gap is smaller. This new data helps policymakers better understand wealth building and demographic trends across the nation.

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