The Trends in U.S. Housing Affordability
A data-driven guide to
The Trends in U.S. Housing Affordability
Housing is a key issue impacting many communities across the United States. This guide presents data on rental costs relative to incomes and homeownership trends to provide a clearer picture of the current housing landscape.
What is the homeownership rate in the U.S.?
About 65.6% in 2024. That means about 2 in 3 households owned their home while the remainder rented.
65.6% of U.S. households owned their home in 2024
68.8% of Connecticut households owned their own home in 2024, ranking 28th of 51
2 in 3 U.S. households owned their home in 2024
Source: US Census Bureau
According to the Census Bureau, understanding homeownership rates can help determine if people's needs are met by available housing and can inform policy and funding decisions.
During the housing bubble of the mid-2000s, homeownership rates rose to a peak of 69% in 2004. When the housing bubble popped in 2007 and the Great Recession started, foreclosures increased and there was a shift from owning to renting: the homeownership rate declined through 2016, when it bottomed out at 63.4%. It then began to increase. The homeownership rate in 2024 was up 1 percentage point from 2019.
How many households in the US spend too much on housing?
About 42.5 million in 2024. That's 33% of all households. These households spent at least 30% of their total income on rent or mortgage payments and utilities. The Department of Housing and Urban Development considers households that spend more than 30% of their income on housing to be cost-burdened. Cost-burdened households may have less money for other necessities such as food, healthcare, or savings.
42.5M households were cost burdened in 2024
33% of U.S. households were cost burdened in 2024
26.6% of Connecticut households were cost burdened in 2024
Source: U.S. Census Bureau
The number of cost-burdened households increased from 39 million in 2014 to 42.5 million in 2024. Cost burden considers both household income and housing costs, so factors affecting either of these can influence the number of burdened households. For example:
- Changes in wages, employment status, or the number of people in a household can impact household income.
- Changes in housing supply/demand or interest rates can affect costs.
A growing or declining US population can also affect the number of cost-burdened households. To counteract this, USAFacts analyzed the percentages of cost-burdened households rather than just the number. This prevents such population changes from skewing the data.
In 2024, 33% of US households were cost burdened. This is down 1.5 percentage points from 2014.
Cost burden varies for renters and homeowners. For example, during the Great Recession (2007–2009) unemployment rose, millions of homes entered foreclosure, and rental demand increased. By 2010, cost burden had increased among renters while staying flat among homeowner households. Since 2014, the proportion of cost-burdened owner households has decreased from 25% to 23.6% in 2024. Meanwhile, cost burden has not changed from 51.8% among renter households.
