"Redfin puts it bluntly: America's homeowner population has stopped growing. Chen Zhao, Redfin's head of economics research, attributes this to "rising home prices, high mortgage rates and economic uncertainty [which] have made it increasingly difficult to own a home." Zhao also noted secular shifts in the economy that may be playing a role. "People are also getting married and starting families later, which means they're buying homes later-another factor that may be at play.""
"At first glance, a drop of 0.1% may seem small, but it marks a halt to a steady climb and suggests deeper challenges roiling the market. The median home sale price rose 1.4% year-over-year in July to $443,867, the highest July figure on record. Meanwhile, mortgage rates now stand at 6.56%, more than double the lows recorded during the pandemic-a time when homebuying seemed to be accessible for many."
America's homeownership rate shifted into negative territory in the second quarter of 2025 as homeowner households fell 0.1% year over year to 86.2 million while renter households rose 2.6% to 46.4 million. Mortgage rates more than doubled between January 2021 and October 2023, constraining the housing market. Median home sale price in July reached $443,867, up 1.4% year over year, and mortgage rates now stand at 6.56%. Higher prices and elevated mortgage costs are reducing access to homebuying and forfeiting wealth-building through home equity for many households. Later marriage and delayed family formation also contribute to reduced home purchases.
Read at Fortune
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