”Survey says” looks at various rankings and scorecards judging geographic locations while noting these grades are best seen as a mix of artful interpretation and data.
Buzz: The share of Californians living in their own home hit an 11-year high last year but the state’s homeownership rate is third-worst in the nation.
Source:My trusty spreadsheet analyzed state homeownership stats from the Census Bureau, looking at 2022’s average rate vs. the pre-pandemic 2010-19 average.
Topline
California’s 55.3% average homeownership rate in 2022 was the state’s best since 2011 – but only Washington, D.C., at 42% and New York at 54% were lower.
The highest ownership rates in 2022 were found in West Virginia at 79%, then Wyoming at 75%, Minnesota at 75%, Maine at 75% and Delaware at 75%.
And what of California’s economic rivals? Texas was No. 45 at 64%, while Florida was No. 31 at 67%.
Details
The pandemic era’s low mortgage rates and increased urges for larger living spaces elevated ownership rates in many places
Look at California’s rate. It rose 0.6 percentage points vs. the pre-coronavirus 2010-19 average of 54.7%. That was the 16th-smallest rise nationally.
The biggest jump was seen in Rhode Island which rose 5.1 points to 65.9% vs. 60.8%. Then came Wyoming (up 4.3 points – 75.2% vs. 70.9%), Maryland (up 4.2 points – 71.9% vs. 67.6%), Iowa (up 3.9 points – 73.8% vs. 69.9%) and Nevada (up 3.9 points – 60.3% vs. 56.4%).
Let’s also note that 10 states saw falling homeownership.
The largest drops were in Connecticut (down 2.4 points – 64.8% vs. 67.2%), Massachusetts (down 1.6 points – 61.2% vs. 62.8%), Ohio (down 1.6 points – 66% vs. 67.6%), New Jersey (down 0.8 points – 64.2% vs. 65%) and North Carolina (down 0.7 points – 65.9% vs. 66.6%).
Texas ownership grew 0.6 points – 63.6% vs. 63%, 34th best, while Florida increased 1.2 points – 67.3% vs. 66.1%, No. 25.
Bottom line
Boosting homeownership is a complex issue, but in some ways, it’s simple and mostly tied to prices.
Look what we see when my spreadsheet sliced the states into thirds based on their homeownership ranking.
The 17 states with the highest ownership averaged 73.7% in 2022. That rate was up 1.9 percentage points vs. 2010-19. And the average home values in these states, using Zillow data, ran $287,400.
The 17 states with the lowest ownership averaged 61.7% last year, up 0.8 points vs. 2010-19. Homes there cost $437,500.
So, in the places where homes cost one-third less, homeownership runs one-fifth higher.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
I'm well-versed in real estate trends and statistical analysis, which allows me to dive into the intricate details of homeownership rates and their correlations with economic factors. The information you provided discusses homeownership rates across different states in the US, highlighting California's position and its comparison with other states. Let's break down the concepts and elements mentioned:
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Homeownership Rates: The percentage of households that own their homes compared to those that rent. It's a vital indicator of housing market stability and economic well-being.
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State Comparison: The article compares California's homeownership rate with other states, mentioning the highest rates in West Virginia, Wyoming, Minnesota, Maine, and Delaware, and the lowest rates in Washington, D.C., and New York.
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Trends in Homeownership: It discusses changes in homeownership rates, particularly during the pandemic era, citing increases and decreases across various states.
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Economic Factors: The article touches upon the influence of economic factors like mortgage rates, housing prices, and their impact on homeownership rates. Lower mortgage rates and increased desires for more living space are cited as reasons for rising ownership rates in some areas.
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Geographic Rankings: It segments states based on homeownership rates, dividing them into thirds. It compares the average rates and correlates them with average home values, indicating an inverse relationship between homeownership rates and home prices.
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Data Sources: The data primarily comes from the Census Bureau for homeownership rates and Zillow for average home values.
This analysis by Jonathan Lansner emphasizes the complex nature of homeownership and its strong ties to housing prices. It illustrates how in states where homes are more affordable, homeownership rates tend to be higher. This correlation sheds light on the impact of housing affordability on people's ability to become homeowners, a critical factor in understanding regional economic dynamics.
