If there is one element of the American dream that is universally shared, it is the hope of one day owning your own home. But a new report from Redfin based on Census data shows that trend is shattering, as the number of homeowner households fell to its lowest level in almost a decade during the second quarter.
The number dropped 0.1% to 86.2 million from 2Q 2024 to 2Q 2025, representing the first decline since 2016. On the other hand, renter households rose 2.6% to 46.4 million in the period, one of the largest increases in recent years.
Redfin attributed the slippage in the owner population to rising home prices – the median climbed 1.4% to $443,867. Plus, mortgage rates remain high at around 6.5% and the economic uncertainty the country faces doesn't help. It also raised the possibility that people are marrying and starting families later and, therefore, delaying home purchases.
However, despite the decline in the absolute number of homeowners in the U.S., the homeownership rate has remained fairly steady, though it slipped from 65.6% in 2Q 2024 to 65% in 2Q 2025. The rentership rate rose to 35% from 34.4%.
Metros with the highest rates of homeownership included North Point, FL (79.5%), Baton Rouge (78.6%), Charleston (76.9%), Cape Coral, FL (74%), Albuquerque (73.5%), Rochester, NY (73%) and Tucson (72%). Others with rates over 70% included Allentown, PA, Cincinnati, Cleveland, Columbia, SC, Indianapolis, Little Rock, Nashville, Phoenix, Syracuse and Virginia Beach.
The lowest rates of homeownership were recorded in Los Angeles (46.4%), New York (49.4%) and San Diego (51.7%), each of which had correspondingly high rates of rentership.
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