Erik Hembre and Federal Reserve Bank of Minneapolis researchers reveal U.S. homeownership rate is 53 percent, lower than the traditional 65 percent figure.

Erik Hembre, a senior economist at the Minneapolis Fed, reported that the actual U.S. homeownership rate is 53 percent, a significant departure from the commonly cited 65 percent figure. The administration announced that the new measure, known as the homeowners-to-population ratio (HPOP), provides a more accurate picture by counting individual adults rather than housing units. The traditional owner-occupancy rate often overstates homeownership because it counts every adult living in a house as a homeowner, even if they do not own the property. Erik Hembre noted that 13.9 percent of U.S. adults live in owner-occupied homes without actually owning one, including adult children, roommates, and aging parents. This discrepancy is most visible among younger adults; while the traditional rate suggests 37 percent of adults under 35 own their homes, the HPOP reveals the true figure is only 22 percent. The research also highlights that housing affordability strongly correlates with these figures, with high-cost states like Hawaii showing the largest gaps between the two measures.

Sources