WASHINGTON (WOWO)— The nation’s widely followed homeownership rate may not provide a complete picture of how many Americans actually own the homes where they live, according to a new analysis from the Federal Reserve Bank of Minneapolis.
Researchers say the traditional measure used by the U.S. Census Bureau tracks owner-occupied housing units — homes where the owner lives — rather than the number of individual adults who personally own the home they occupy.
That difference means the official homeownership rate may include millions of adults who live in a home owned by someone else, such as adult children living with parents.
The Minneapolis Fed analysis estimates nearly 14% of U.S. adults live in owner-occupied homes but are not homeowners themselves.
“More than one in eight of the nation’s adults are misrepresented in the most-cited statistic on homeownership,” researchers wrote.
The current U.S. homeownership rate is about 65% when measured by occupied housing units. But when researchers measure ownership by individual adults, they estimate the share of Americans who own the home they live in is closer to 53%.
The alternative measure, called the homeowners-to-population ratio, or HPOP, looks at the percentage of adults who personally own their homes.
Researchers argue the HPOP provides a clearer view of household finances and economic conditions, particularly among younger Americans who are increasingly living with family members because of high housing costs.
The difference is especially significant among adults under age 35.
In 2024, the homeownership rate for households headed by someone under 35 was 37%. But under the Minneapolis Fed’s person-based measure, only about 22% of adults under 35 owned the home they lived in.
A separate analysis from Realtor.com found nearly one-third of adults under 35 — about 25.2 million people — lived with their parents in 2025, a record high.
Researchers said the gap between traditional homeownership figures and individual ownership rates varies significantly by state, often depending on housing affordability.
Every state showed a lower HPOP compared with its traditional homeownership rate.
“The most obvious explanation is that in places where housing is cheaper, more adults are buying their own homes,” researchers said.
Hawaii had the largest difference between the two measurements. While about 61.6% of occupied housing units in the state are owner-occupied, only 42.7% of adults were homeowners under the HPOP measure — an 18.9 percentage-point gap.
Delaware and New Mexico followed with gaps of 15 percentage points.
Other states with some of the largest differences included Florida, California, Utah, Maryland, Georgia, Nevada and New Jersey.
Researchers found the smallest gap in North Dakota, where the difference between owner-occupied housing and individual ownership was less than four percentage points.
The report linked the smaller gap in North Dakota to more affordable housing and fewer young adults living with parents.
North Dakota ranks among the most affordable states based on rent compared with income, while Hawaii ranks among the least affordable.
Researchers said housing costs are only one factor affecting whether people live independently or share homes with family members.
Marriage patterns, caregiving responsibilities for older relatives and parents helping adult children with housing expenses also influence living arrangements.
The researchers said using a people-based measurement of homeownership may provide a more accurate understanding of housing affordability and economic security, especially as younger generations face higher home prices and changing household patterns.
