Homeownership Rate Ticks Down in Early 2026

The latest report from the U.S. Census Bureau on residential vacancies and homeownership in the first quarter of 2026 found the homeownership rate declined slightly to 65.3%.

That was down from 65.7% the prior quarter, although the latest reading is statistically unchanged from both the previous period and a year earlier, indicating a reactively stable trend in homeownership.

The homeownership rate measures the share of households that are owner-occupied as opposed to rented, and it's a critical metric of economic health.

But while numbers are generally holding steady, there are key differences across regions and among age groups.

Homeownership rates vary by region, race, and age group

"Regional differences remain pronounced," notes Realtor.com senior economic research analyst Hannah Jones. "The Midwest continues to stand out for its high homeownership rate, reaching 70.1% in Q1 2026, well above the South (66.9%), Northeast (61.5%), and West (60.7%), and posting the only statistically significant year-over-year gain in homeownership of any region."

The Midwest's standout rates are due in large part to its relative affordability compared with coastal regions. Realtor.com's March 2026 Hottest Housing Markets report found that 10 of the top 20 hottest markets were in the Midwest, with six in Wisconsin, two in Illinois, and two in Ohio.

Aside from location, homeownership varies widely by race and age. Boomer householders ages 65 and over maintained the highest homeownership rate at 78.4%, while those under 35 years of age saw the lowest rate at 36.8%.

Notably, Gen Xers aged 45 to 54 experienced a slight decline in ownership compared with the first quarter of 2025, while most other age brackets remained stable. Gen Xers represent the highest number of single female homebuyers and the largest number of multigenerational households.

Homeownership rates among non-Hispanic white householders slightly edged up to 75%. For comparison, only 44% of Black Americans are homeowners, and 48.2% of Hispanic Americans are homeowners. Homeownership rates among Asian, Native Hawaiian, and Pacific Islanders declined by 3% between the end of 2025 and the beginning of 2026.

Vacancy rates also vary

Overall, around 89.7% of the 149 million housing units in the U.S. were occupied in the first quarter of 2026, while 10.3% remained vacant.

Vacancy rates are a key indicator of the health of a particular housing market. Lower vacancy rates indicate a tightening of the market (and a more competitive housing market for buyers and renters), while higher vacancy rates often signal a potential oversupply, which could lead to lower rents and sales prices.

Overall, homeowner vacancy rates held steady at 1.1% this quarter, while rental vacancy rates crept up slightly from 7.1% a year ago to 7.3%.

But regionally, there was greater variety. Not surprisingly, the Midwest also saw lower homeowner and rental vacancy rates than other parts of the country; homeowner market vacancies are at 0.7%, and rental market vacancies are at 6.5% in the region. The South, on the other hand, continued to see the most vacancies in both homeowner and rental housing markets, at 1.6% and 9.3%, respectively.

The stats differ across urban and suburban environments, too. Rental vacancies were highest in larger cities, at 7.8%, compared with suburban areas.

The price of entry

The Census Bureau's latest report confirms what many prospective buyers may be feeling on the ground: It’s still a competitive market. With the homeowner vacancy rate stuck at a lean 1.1%, the inventory of available homes isn’t just tight—it’s historically thin. And that's contributed to record-high rents and home purchase prices.

In the first quarter of 2026, the median asking rent for vacant units reached $1,579. When it came to home sales, the median asking price for vacant for-sale units was $339,100, according to census data.

"While homeowner vacancy remains below pre-pandemic norms, the modest upward drift seen through 2025 appears to have stabilized, suggesting inventory recovery may be leveling off in the near term," Jones says.

For those hunting for a deal, the vacancy data suggests the best bet might be looking toward the South, which showed slightly more breathing room in terms of vacancies, or the Midwest, where homeownership is most prevalent and prices remain lower.

For now, the takeaway is clear: Being a buyer in 2026 requires a mix of patience, a solid mortgage pre-approval, and the readiness to jump the moment the right front door opens.