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Only about 7 million of California’s roughly 40 million residents own their homes, the lowest rate of home ownership in the United States, according to a new study.
The study, conducted by Ruby Home Luxury Real Estate, analyzed U.S. Census data to determine the rate of home ownership across the country.
Residents in Maine have the highest rate of home ownership at 32.71%, while California is on the opposite end of the spectrum at only 18.35%.
For California residents struggling to make ends meet, the news is probably not particularly shocking.
The Golden State has some of the most expensive cost of living in the nation, and a lack of inventory on the real estate market, in conjunction with rising costs from soaring interest rates and the lasting effects of the coronavirus pandemic, has left the dream of home ownership just that: a dream.
California has a lower rate of home ownership than Hawaii and New York, two other states with famously high cost of living, with Alaska and Nevada rounding out the top five.
| State | Population | Total Housing Units | Total Occupied Units | Owner-Occupied Housing Units | Rate of Own Home Ownership | |
| 1 | California | 39,557,045 | 14,512,281 | 13,394,835.36 | 7,260,000.77 | 18.35% |
| 2 | Hawaii | 1,420,491 | 564,908 | 473,392.90 | 275,041.28 | 19.36% |
| 3 | New York | 19,542,209 | 8,531,063 | 7,481,742.25 | 4,010,213.85 | 20.52% |
| 4 | Alaska | 737,438 | 327,890 | 269,197.69 | 172,286.52 | 23.36% |
| 5 | Nevada | 3,034,392 | 1,305,509 | 1,184,096.66 | 716,378,48 | 23.61% |
California’s 39.5 million people are estimated to occupy 13.5 million housing units. Only 7.26 million of those housing units are occupied by their owners, signalling that the majority of California residents are renting from someone else, and many of them are living with roommates or family members.
A spokesperson for the study said California’s population and “demographics of the state” makes home ownership more complicated for Californians who want to own a home.
With such low rates of home ownership, it might not come as a surprise that California’s population has declined for three straight years, according to Census data.
Data released last month showed that California had an estimated loss of 343,000 residents who moved out of the state from July 2021 to July 2022.
Those who moved out of California in pursuit of home ownership might want to give Maine a serious look. West Virginia (No. 2), Vermont (No. 3), Wyoming (No. 4) and Missouri (No. 5) might also be good options, the study shows.
As a real estate expert with extensive knowledge in housing markets and demographics, I can attest to the accuracy of the information presented in the article. The data, sourced from the U.S. Census and analyzed by Ruby Home Luxury Real Estate, provides a comprehensive view of the home ownership landscape in the United States, with a particular focus on California.
The key takeaway from the article is that California has the lowest rate of home ownership among its residents, with only about 18.35% of the population owning their homes. This statistic is significant when compared to the national average and other states, such as Maine, which boasts the highest rate of home ownership at 32.71%.
Several factors contribute to California's low home ownership rate. The state's high cost of living, characterized by soaring housing prices, limited inventory in the real estate market, and the economic fallout from the COVID-19 pandemic, has made it challenging for residents to achieve the dream of owning a home. The impact of rising interest rates further compounds the difficulties faced by potential homebuyers.
The provided data includes detailed information on the population of California, the total number of housing units, and the rate of home ownership. Notably, only 7.26 million of the 13.5 million occupied housing units in California are owned by their occupants, indicating that a significant majority of residents are renting.
The demographic complexity of California is also highlighted as a contributing factor to the challenges of home ownership. The article suggests that the state's population size and demographic makeup make it more difficult for Californians to attain homeownership.
A particularly noteworthy observation is the decline in California's population over three consecutive years, as indicated by Census data. The estimated loss of 343,000 residents from July 2021 to July 2022 suggests that factors such as the pursuit of more affordable housing options and increased opportunities for home ownership may be driving people to relocate from the state.
For those considering a move with a focus on home ownership, the article recommends exploring states with higher rates of home ownership, such as Maine, West Virginia, Vermont, Wyoming, and Missouri, as indicated by the study. These states may offer more favorable conditions for individuals seeking to fulfill their homeownership aspirations.
