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 homeownership in the United States. While the traditional owner-occupancy rate is often cited as 65 percent, the HPOP reveals a lower homeownership rate of 53 percent. This new measure accounts for all adults, including those who live in owner-occupied homes but do not own them, such as adult children living with parents or roommates. The HPOP offers a more accurate representation of economic well-being by identifying the specific housing status of every adult. For example, it reveals that only 22 percent of adults under age 35 own their homes, correcting the inflated figures of the traditional measure. The HPOP also highlights how housing costs affect ownership; in expensive states like Hawaii, the gap between the two measures is largest. By focusing on the individual rather than the housing unit, the HPOP provides a clearer picture for policymakers to understand wealth building and demographic trends.

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