America’s homeownership crisis may be even more severe than widely understood. A new study argues that while official government statistics show about 65% of U.S. homes are owner-occupied, only about 53% of American adults actually own the homes they live in.
The difference stems from how homeownership is measured. The Census Bureau’s longstanding homeownership rate tracks whether a home is owner-occupied, not whether every adult living there owns it. For example, a married couple who own a home they share with an adult son counts as one owner-occupied household, even though the son does not own the property himself.
The researchers argue that measuring homeownership by individual adults provides a more accurate picture of how many Americans have actually achieved homeownership, particularly as more adults live with family members or roommates because of high housing costs.
Researchers estimate that nearly 14% of adults live in owner-occupied homes without actually owning them. That group includes adult children, aging parents, roommates, friends, and others living with homeowners. To better capture individual ownership, the researchers propose a new metric, Homeownership-to-Population, or HPOP, which measures the share of adults who own the home they live in.
The lower estimate comes as homeownership becomes increasingly out of reach for many Americans, particularly younger generations. According to recent surveys, 62% of Gen Z say they worry they will never be able to buy a home. Meanwhile, the median age of first-time homebuyers jumped from 33 in 2021 to 40 in 2025, reflecting the growing financial hurdles facing prospective buyers.
Those hurdles continue to mount. In June, the median existing-home price reached a record $440,600, up 49.2% from June 2020.
National Association of Realtors Chief Economist Lawrence Yun said the biggest obstacle remains a lack of housing supply.
“Without a doubt, affordability is a major challenge for people who want to become homeowners, which is the reason why we need more supply,” Yun said.
Realtor.com estimates the United States faces a housing shortage of roughly 4 million homes.
Higher borrowing costs have compounded the problem. Since the COVID-19 pandemic, the Federal Reserve raised interest rates from near zero to above 5.25%, while the average 30-year fixed mortgage rate has more than doubled from roughly 3.11% in 2020 to about 6.55%.
Congress attempted to address the housing shortage by passing the 21st Century ROAD to Housing Act in July, legislation designed to reduce regulatory barriers to home construction while encouraging state and local governments to reform zoning and land-use policies through grant incentives.
House Speaker Mike Johnson (R-LA) called the legislation “transformational.”
“This transformational legislation will help address the housing affordability problem, reduce regulations so builders can build, limit institutional investing in the housing market, and bring the American Dream back into reach for millions of young and working families,” he said.
Housing economists welcomed the legislation but cautioned that meaningful relief will take time.
“This bill directly targets some of the biggest drivers of housing costs: land-use restrictions, permitting delays, financing constraints and regulatory hurdles,” said Selma Hepp, chief economist at Cotality. “Unfortunately, homebuyers should not expect immediate relief.”
Hepp added that “housing development takes time and many of the benefits would likely materialize gradually rather than overnight.”
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