Lawler: Census 2010: Homeownership Rates by Selected Age Groups

Lawler: Census 2010: Homeownership Rates by Selected Age Groups

by CalculatedRisk on 8/31/2011 

Update from Lawler: Yesterday I gave some stats on the “states” with the highest and lowest shares of owner-occupied homes owned free and clear. Those %’s were incorrect; they were %’s for the % of ALL occupied homes owner free and clear. (My bad).

From economist Tom Lawler:

While Census has not released “Summary File 1” for the US as a whole, it has released such data for all 50 states plus DC. As such, aggregate US data from these files, including homeownership rates by selected age groups, can be constructed using the mathematical tools called “addition” and “division.”

Note the sizable declines in homeownership rates over the last decade in the 25-54 year old age groups!

US Homeownership by Age Group (Decennial Census)
1980 1990 2000 2010
15 to 24 years 22.1% 17.1% 17.9% 16.1%
25 to 34 years 51.6% 45.3% 45.6% 42.0%
35 to 44 years 71.2% 66.2% 66.2% 62.3%
45 to 54 years 77.0% 75.3% 74.9% 71.5%
55 to 64 years 77.6% 79.7% 79.8% 77.3%
65 years and over 70.1% 75.2% 78.1% 77.5%
Total 64.4% 64.2% 66.2% 65.1%

Here is a comparison of the decennial Census homeownership rates (which reflect April 1st) and the Housing Vacancy Survey (which are yearly average estimates). HVS data by age group only go back to 1982.

US Homeownership by Age Group (Housing Vacancy Survey)
1980 1990 2000 2010
15 to 24 years 15.7% 21.7% 22.8%
25 to 34 years 44.2% 47.1% 44.4%
35 to 44 years 66.3% 67.9% 65.0%
45 to 54 years 75.2% 76.5% 73.5%
55 to 64 years 79.3% 80.3% 79.0%
65 years and over 76.3% 80.4% 80.5%
Total 63.9% 67.4% 66.9%

While the decennial Census data show that the homeownership rates for all age groups save for “geezers” in 2010 were down significantly from 1990, the HVS data do not show the same declines. Census officials are unsure of why there are such large discrepancies, but most – though not all — feel that the decennial Census data are more accurate, and that there is “sumpin’ wrong” with the HVS data (the same is true for the HVS vacancy data), and not just for 2010, but for 2000 as well.

Some readers might be surprised at the sizable declines in the homeownership rates for younger householders from 1980 to 1990 – after all, they’ve been deluged with charts showing “aggregate” US homeownership rates over the last several years, but with little or no discussion of homeownership rates by age group. There was actually a fair amount written about the drop in younger householder homeownership rates from 1980 to 1990, with researchers attributing the decline to a number of factors – younger folks marrying later in life, job choices and labor mobility, and several other factors (I don’t plan to summarize the literature.)

Also from Tom Lawler: Number of Homes Owned Free and Clear

Here is a table derived from the decennial Census 2010 on the number of owner-occupied homes with a mortgage vs. those owned free and clear.

Owner-Occupied Homes (Census 2010)
Total 75,986,074
Owned with a mortgage or loan 52,979,430
Owned free and clear 23,006,644

Update: By state with correction:

% of OO Homes owned free and clear, 2010
US Total 30.3%
Alabama 36.6%
Alaska 31.2%
Arizona 27.9%
Arkansas 38.9%
California 22.3%
Colorado 22.3%
Connecticut 26.4%
Delaware 28.2%
District of Columbia 19.6%
Florida 33.0%
Georgia 25.6%
Hawaii 29.3%
Idaho 29.1%
Illinois 28.3%
Indiana 27.9%
Iowa 34.8%
Kansas 33.3%
Kentucky 35.9%
Louisiana 40.9%
Maine 33.5%
Maryland 21.2%
Massachusetts 25.8%
Michigan 31.3%
Minnesota 27.2%
Mississippi 41.5%
Missouri 31.5%
Montana 38.5%
Nebraska 33.7%
Nevada 21.4%
New Hampshire 27.5%
New Jersey 27.1%
New Mexico 37.7%
New York 33.0%
North Carolina 30.3%
North Dakota 42.9%
Ohio 30.0%
Oklahoma 37.7%
Oregon 28.2%
Pennsylvania 35.0%
Rhode Island 26.2%
South Carolina 33.9%
South Dakota 39.1%
Tennessee 34.1%
Texas 34.4%
Utah 23.7%
Vermont 31.9%
Virginia 25.3%
Washington 25.6%
West Virginia 47.7%
Wisconsin 30.3%
Wyoming 36.5%

CR Note: So, in 2010, about 30.3% of owner-occupied homes were owned free and clear. There will be much more on the 2010 Census data once the Summary File is released.

Advertisements

Leave a comment

Filed under Home Sales

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s