Top Posts – Homeownership Rates of Family Households

2024-12-31T09:14:37-06:00

With the end of 2024 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In September, Catherine Koh dived into data on the homeownership rate of various household types including married couples with children, married couples with no children, single parents, and others. The homeownership rate for multigenerational households increased by 4.9 percentage points (pp) over the last decade, but there’s another household type that experienced an even larger increase in the homeownership rate over the same period—single parent households. In further analysis of the Census’s American Community Survey (ACS) data, NAHB dives deeper into the homeownership rate for other family household types: married couples with no children, married couples with children and single parent households. In 2022, most family households were married with no children (44%), followed by married with children (26%), single parents (12%), others (12%), and multigenerational families (6%). This composition has not changed much, with the exception of a gradual decrease in the share of married with children and single parent households, which is offset by an increase in the share of married with no children households. The homeownership rate for single parent households saw the largest gains in homeownership rate with an increase of 5.7 percentage points over the decade. However, the overall level of homeownership rate for single parent households remains the lowest among all other family household types at just 41%.    Another group that saw a large increase was the married couple with children households, with a 4.5% increase over the decade from 73% to 78%. Like multigenerational households, these increases were spurred on by historically low mortgage rates in 2021. The only household type to have plateaued was married without children. As a matter of fact, these households saw decreasing homeownership rates for a few years before creeping back up to be at roughly the same rate as they were ten years ago at 84%. Nonetheless, married without children households remain as the group with the highest homeownership rate with an average rate of 84% over the decade. We also examined the estimated home price-to-income ratio (HPI) for various household types. To calculate the home prices for recent homebuyers we used the median property value for owners who moved into their property within the past year. Here is where we see the effect of how multigenerational households were able to lower their HPI with pooled income and budgets. In contrast are single parent households with their estimated home prices approaching five times their income, indicating that these households are significantly burdened by housing costs.    Given that homeownership rates jumped in recent years for most household types despite increases in home prices suggests that the low mortgage rates in 2021 made steep home prices more palatable for homebuyers to enter the market. However, it is unlikely that we’ll see a continued increase in homeownership while mortgage rates remain elevated.  Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Top Posts – Homeownership Rates of Family Households2024-12-31T09:14:37-06:00

Share of Young Adults Living with Parents by Congressional District

2024-11-01T12:25:29-05:00

Building on the post-pandemic trend, the share of young adults living with their parents fell to a decade low, according to NAHB analysis of 2022 American Community Survey (ACS). However, young adults continue to face difficult decisions about their living arrangements due to elevated home prices and increasing costs of living. While some young people established independent households during the pandemic, according to 2023 ACS data, many young adults continue to live with their parents in higher-cost areas, with variations across states and congressional districts. In general, the share of young adults (aged 18-34) living with parents positively correlates with housing costs, particularly in coastal areas. This trend reflects young adults’ increasing financial burdens as both rents and home prices surge. A previous post demonstrated that more than half of renter households spend 30% or more of their income on housing, suggesting that affordability issues may delay young adults’ independence and path to homeownership. In 2023, 31.8% of young adults lived with their parents at the national level. Across congressional districts, the share of young adults living with parents varies significantly, reflecting different local housing affordability challenges. The top five congressional districts with the highest shares of young adults living with parents are located in areas with high housing costs and limited rental options. These districts include: New York, District 3, 58.6% New York, District 4, 56.5% New York, District 1, 56.5% California, District 38, 54.0% New Jersey, District 5, 53.4% In contrast, the bottom five congressional districts with the lowest shares of young adults living with parents are in major cities known for high housing costs, low homeownership rates and robust rental markets. As rental options provide more independence, a higher share of renter households in California, New York and Washington appears to be associated with fewer young adults living with parents. The bottom five districts include: New York, District 12, 8.4% Texas, District 37, 9.6% California, District 11, 11.6% Washington, District 7, 11.7% District of Columbia, At Large, 12.2% Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Share of Young Adults Living with Parents by Congressional District2024-11-01T12:25:29-05:00

Multifamily Housing: Distribution, Building Size, and Gross Rent Across Congressional Districts

2024-10-31T10:19:15-05:00

Approximately 27% of the national housing stock consists of multifamily homes—defined as residential buildings with multiple separate housing units within one structure. According to the 2023 American Community Survey 1-year estimates, these units range from small duplexes, triplexes, and quadplexes (2 to 4 units) to medium-sized buildings (5 to 49 units) and large complexes (50 or more units). While most congressional districts have multifamily housing shares between 10% to 20% of total housing units, this proportion varies widely, from as low as 8% to as high as 98%. The map below illustrates the distribution of multifamily housing stock across congressional districts with larger shares indicated by bigger bubble size. This visualization shows that districts with the largest share of multifamily units are, unsurprisingly, concentrated in densely populated urban areas. New York leads in this regard, with its 12th and 13th Districts – both encompassing upper and midtown Manhattan – having almost exclusively multifamily units at 98% each. In fact, eight out of the top 10 districts with the largest share of multifamily housing are in New York. Other areas with large shares include New Jersey’s 8th District, also within the New York metropolitan area, and Massachusetts’s 7th District that includes Boston. At the lower end of the distribution, North Carolina’s 8th District has only 8% multifamily units, while Michigan’s 2nd and 9th Districts, Arizona’s 9th District, and Florida’s 12th District all have around 9% multifamily units. Building Sizes in Multifamily Units In most congressional districts, multifamily units tend to be on the smaller side, with the majority consisting of buildings with 5 to 19 units, followed by those with 2 to 4 units. Duplexes, triplexes, and quadplexes (2 to 4 units) are especially common in the Northeast, various Mountain states, and parts of California. Apart from Illinois’s 4th District, which has the highest share of small multifamily units (70%), the remaining top five districts with the largest shares of 2 to 4 unit buildings are all in New York, each exceeding 60%. Buildings with 5 to 19 units are more prevalent across the South and Midwest, with Maryland’s 2nd, 3rd and 4th Districts owning majority shares of this building type with 59%, 62% and 61%, respectively. High-density areas like New York’s 12th District, Florida’s 27th District – located within Miami-Dade County – and Washington, D.C. (at large), tend to have the largest multifamily (50 or more) buildings. North Dakota (at large) and Minnesota’s 6th District stand out as the only two congressional districts where the majority of multifamily buildings have between 20 to 49 multifamily units. Gross Median Rent and Renter Cost Burden Multifamily units are predominantly rented rather than owned, with 86% being occupied by renters. This trend holds across all multifamily types, with larger buildings generally more likely to be rental properties, while condominiums (owner-occupied units) are often smaller buildings. A Fannie Mae study on the multifamily market found that larger properties typically command higher monthly rents, especially in major metropolitan areas. The chart below corroborates this, showing that districts with higher shares of large multifamily buildings (50 or more units) also have higher median monthly rents (including utilities and fuel). However, lower median rents don’t always equate to more affordability, as even low-rent areas can have high renter cost burdens due to lower income levels. For example, New York’s 12th District has the highest median rent at $3,121, with 43% of renters burdened (spending over 30% of income on housing costs), a rate matched by Kentucky’s 5th District, where the median rent is only $727. Overall, despite rent prices moderating (see Real Rent Index), rental cost burdens remain high across the country, with only 23 of 436 congressional districts (including D.C.) having fewer than 40% of renter households burdened by housing costs. Additional housing data for your congressional district are provided by the US Census Bureau here. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Multifamily Housing: Distribution, Building Size, and Gross Rent Across Congressional Districts2024-10-31T10:19:15-05:00

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