Interest rates again on the rise and a tight housing supply have driven home ownership in the U.S. to its lowest rate since the beginning of the Covid-19 pandemic. 

The homeownership rate declined to 65.1% in the first quarter of 2025, the lowest level since the first quarter of 2020, according to a report from the National Association of Home Builders on data from the US Census’s Housing Vacancy Survey. 

Compared to the peak of 69.2% in 2004, the homeownership rate is 4.1 percentage points lower and remains below the 25-year average rate of 66.3%. 

Homeownership rates declined across nearly all age groups over the past year. Among younger households, the homeownership rate for those under 35 declined slightly to 36.6% in the first quarter of 2025, compared to a year ago, still hovering at the lowest rate in the last 6 years.  

Similar declines were seen among the 35-44 and 55-64 age groups, with rates decreasing from 61.4% to 60.3% and from 76.3% to 75.2%, respectively. Homeownership rates for householders aged 45-54 dipped slightly from 70.8% to 70.6%.  

In contrast, those 65 years and over experienced a modest increase from 78.7% to 79%.