Top Posts – Homeownership Rates of Family Households

2024-12-31T09:14:37-06:00

With the end of 2024 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In September, Catherine Koh dived into data on the homeownership rate of various household types including married couples with children, married couples with no children, single parents, and others. The homeownership rate for multigenerational households increased by 4.9 percentage points (pp) over the last decade, but there’s another household type that experienced an even larger increase in the homeownership rate over the same period—single parent households. In further analysis of the Census’s American Community Survey (ACS) data, NAHB dives deeper into the homeownership rate for other family household types: married couples with no children, married couples with children and single parent households. In 2022, most family households were married with no children (44%), followed by married with children (26%), single parents (12%), others (12%), and multigenerational families (6%). This composition has not changed much, with the exception of a gradual decrease in the share of married with children and single parent households, which is offset by an increase in the share of married with no children households. The homeownership rate for single parent households saw the largest gains in homeownership rate with an increase of 5.7 percentage points over the decade. However, the overall level of homeownership rate for single parent households remains the lowest among all other family household types at just 41%.    Another group that saw a large increase was the married couple with children households, with a 4.5% increase over the decade from 73% to 78%. Like multigenerational households, these increases were spurred on by historically low mortgage rates in 2021. The only household type to have plateaued was married without children. As a matter of fact, these households saw decreasing homeownership rates for a few years before creeping back up to be at roughly the same rate as they were ten years ago at 84%. Nonetheless, married without children households remain as the group with the highest homeownership rate with an average rate of 84% over the decade. We also examined the estimated home price-to-income ratio (HPI) for various household types. To calculate the home prices for recent homebuyers we used the median property value for owners who moved into their property within the past year. Here is where we see the effect of how multigenerational households were able to lower their HPI with pooled income and budgets. In contrast are single parent households with their estimated home prices approaching five times their income, indicating that these households are significantly burdened by housing costs.    Given that homeownership rates jumped in recent years for most household types despite increases in home prices suggests that the low mortgage rates in 2021 made steep home prices more palatable for homebuyers to enter the market. However, it is unlikely that we’ll see a continued increase in homeownership while mortgage rates remain elevated.  Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Top Posts – Homeownership Rates of Family Households2024-12-31T09:14:37-06:00

Multifamily Housing: Distribution, Building Size, and Gross Rent Across Congressional Districts

2024-10-31T10:19:15-05:00

Approximately 27% of the national housing stock consists of multifamily homes—defined as residential buildings with multiple separate housing units within one structure. According to the 2023 American Community Survey 1-year estimates, these units range from small duplexes, triplexes, and quadplexes (2 to 4 units) to medium-sized buildings (5 to 49 units) and large complexes (50 or more units). While most congressional districts have multifamily housing shares between 10% to 20% of total housing units, this proportion varies widely, from as low as 8% to as high as 98%. The map below illustrates the distribution of multifamily housing stock across congressional districts with larger shares indicated by bigger bubble size. This visualization shows that districts with the largest share of multifamily units are, unsurprisingly, concentrated in densely populated urban areas. New York leads in this regard, with its 12th and 13th Districts – both encompassing upper and midtown Manhattan – having almost exclusively multifamily units at 98% each. In fact, eight out of the top 10 districts with the largest share of multifamily housing are in New York. Other areas with large shares include New Jersey’s 8th District, also within the New York metropolitan area, and Massachusetts’s 7th District that includes Boston. At the lower end of the distribution, North Carolina’s 8th District has only 8% multifamily units, while Michigan’s 2nd and 9th Districts, Arizona’s 9th District, and Florida’s 12th District all have around 9% multifamily units. Building Sizes in Multifamily Units In most congressional districts, multifamily units tend to be on the smaller side, with the majority consisting of buildings with 5 to 19 units, followed by those with 2 to 4 units. Duplexes, triplexes, and quadplexes (2 to 4 units) are especially common in the Northeast, various Mountain states, and parts of California. Apart from Illinois’s 4th District, which has the highest share of small multifamily units (70%), the remaining top five districts with the largest shares of 2 to 4 unit buildings are all in New York, each exceeding 60%. Buildings with 5 to 19 units are more prevalent across the South and Midwest, with Maryland’s 2nd, 3rd and 4th Districts owning majority shares of this building type with 59%, 62% and 61%, respectively. High-density areas like New York’s 12th District, Florida’s 27th District – located within Miami-Dade County – and Washington, D.C. (at large), tend to have the largest multifamily (50 or more) buildings. North Dakota (at large) and Minnesota’s 6th District stand out as the only two congressional districts where the majority of multifamily buildings have between 20 to 49 multifamily units. Gross Median Rent and Renter Cost Burden Multifamily units are predominantly rented rather than owned, with 86% being occupied by renters. This trend holds across all multifamily types, with larger buildings generally more likely to be rental properties, while condominiums (owner-occupied units) are often smaller buildings. A Fannie Mae study on the multifamily market found that larger properties typically command higher monthly rents, especially in major metropolitan areas. The chart below corroborates this, showing that districts with higher shares of large multifamily buildings (50 or more units) also have higher median monthly rents (including utilities and fuel). However, lower median rents don’t always equate to more affordability, as even low-rent areas can have high renter cost burdens due to lower income levels. For example, New York’s 12th District has the highest median rent at $3,121, with 43% of renters burdened (spending over 30% of income on housing costs), a rate matched by Kentucky’s 5th District, where the median rent is only $727. Overall, despite rent prices moderating (see Real Rent Index), rental cost burdens remain high across the country, with only 23 of 436 congressional districts (including D.C.) having fewer than 40% of renter households burdened by housing costs. Additional housing data for your congressional district are provided by the US Census Bureau here. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Multifamily Housing: Distribution, Building Size, and Gross Rent Across Congressional Districts2024-10-31T10:19:15-05:00

Homeownership Rates for Young Adults

2024-10-24T13:18:38-05:00

With housing affordability at a multidecade low, housing costs have become a major issue in the 2024 presidential election. While NAHB reports the national homeownership rate from the Census Bureau’s Housing Vacancy Survey on a quarterly basis, examining characteristics across congressional districts provides valuable insights. A recent NAHB analysis of 2023 American Community Survey shows about two-thirds (65.2%) of US households are homeowners, yet there are forty congressional districts where renters represent the majority. Another NAHB post found that in the second quarter of this year the homeownership rate for households under the age of 35 has dropped to its lowest level in four years, as higher mortgage rates and low inventory have made affordability a bigger challenge for first-time buyers. As the largest cohort of millennials reach peak homebuying years, it is important to take a closer look at homeownership rate for those under age 35. This post will focus on comparing the homeownership rates of young adults (under 35) across congressional districts using 2023 ACS data. The map below illustrates variation in young adults’ homeownership rates across congressional districts, ranging from 5.2% to 65.6%. In general, young adults’ homeownership rates tend to follow a distinct pattern with respect to the overall homeownership rate, particularly in the top five districts with the highest homeownership rates and the bottom five with the lowest. Table 1 shows that the top five districts with the highest young adults’ homeownership rate also have overall homeownership rate above 80%. However, the share of young adults in the top two districts is relatively low. In New York’s 1st and 4th district, 65% of young adults are homeowners, but they only make up only 8.9% and 9.8% of the overall population. Following that, Michigan’s 9th and 2nd districts have the third and fourth highest young adults’ homeownership rates above 60%. Table 1Congressional DistrictYoung Adults Homeownership RateOverall Homeownership RateYoung Adults Share of PopulationNew York, District 165.6%83.8%8.9%New York, District 465.2%80.7%9.8%Michigan, District 965.2%84.9%14.1%Michigan, District 261.0%82.4%17.3%Maryland, District 559.3%81.7%13.2% Table 2 shows the bottom five districts with the lowest young adult homeownership rates. Like the top five districts, those with the lowest young adult homeownership rates also tend to have lower overall homeownership rates. Among the bottom 15 districts, most are in New York and California, with only the 15th lowest in Washington, D.C. The West coast, in general, tends to have lower homeownership rates. Table 2Congressional DistrictYoung Adults Homeownership RateOverall Homeownership RateYoung Adults Share of PopulationNew York, District 135.2%12.8%20.4%California, District 347.5%22.0%24.8%New York, District 157.9%15.9%18.3%New York, District 78.2%22.0%33.0%California, District 308.7%30.1%24.4% Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Homeownership Rates for Young Adults2024-10-24T13:18:38-05:00

Travel Time to Work Across Congressional Districts

2024-10-22T09:14:59-05:00

Nationally, nearly 140 million people in the United States routinely commuted to work, according to NAHB analysis of the 2023 American Community Survey data. Among these people, approximately 23.8 million people spent more than 90 minutes each day going to and from their place of employment, and nearly 12.5 million commuters traveled at least 120 minutes daily. According to the Nobel Prize winner Daniel Kahneman’s research (2004), “commuting to work” was one of the least enjoyable activities and was most frequently associated with negative feelings during the day. While much research has revealed that longer commute times are associated with lower happiness and well-being, research by political scientists Benjamin Newman, Joshua Johnson, and Patrick Lown found that commuting significantly decreases political participation. People with long commute times are less involved in politics. As the presidential election approaches, it is worth noting the variation in commute times across congressional districts. By analyzing the data from the American Community Survey (ACS) 1-year estimates, we summarize trends in the mean travel time among U.S. workers between 2010 and 2023 and also provide a deeper understanding of geographic patterns and the variation in commute times across congressional districts. In this article, “mean travel time to work” is calculated by dividing the total one-way commute time by the number of workers who commute. It indicates the average time workers spend traveling from home to work daily. From 2010 to 2019, the mean travel time to work in the United States increased every year. In 2021, the COVID-19 pandemic led to a significant increase in remote work, meanwhile, the mean travel time to work decreased dramatically. Since then, the mean travel time to work increased by 1.2 minutes to 26.8 minutes in 2023 but remained below its historic high of 27.6 minutes in 2019. Commute times vary across congressional districts and show geographical patterns. The map above illustrates the variation in the mean travel time to work in 2023 by five categories from light teal to dark blue (data is not available for Texas’s 27th congressional district). The lightest teal represents these congressional districts where people spend 17.2 – 19.9 minutes traveling to work daily, while the dark blue marks these congressional districts where people spend 35 minutes or more traveling to work daily, on average. Noticeably, most people in the Mountain and West North Central Divisions have smaller travel times than those in the coastal states. In the least mean travel time category (between 17.2 and 19.9 minutes), there are 12 congressional districts in total. These include two congressional districts in both Nebraska and Iowa, one in Kansas, Texas, Montana, and Oregon, and four at-large congressional districts in South Dakota, North Dakota, Wyoming, and Alaska. Nebraska’s 3rd congressional district, one of the largest non-at-large districts in the United States, had the least mean travel time to work among all 436 congressional districts. People from Nebraska’s 3rd district spent only 17.2 minutes traveling to work on average and 80% of them drove alone to work. It was followed by Kansas’s 1st congressional district and Texas’s 19th congressional district. Within the top mean travel time category, people spend 35 minutes or more traveling to work daily. It includes 12 congressional districts in New York, three in California, two in Maryland, and one in both Virginia and New Jersey. It is no surprise that New York had the longest commute time in the United States. The mean travel time to work was 32.8 minutes daily, on average. Out of 26 congressional districts in New York, 18 of them had higher mean travel time to work than the national average of 26.8 minutes. The top eight congressional districts with the highest mean travel time to work were all in New York. A larger share of people who worked outside their county of residence partially explains longer commute times in congressional districts where people spent 35 minutes or more traveling to work daily. For example, New York’s 5th congressional district, with the highest mean travel time to work of 45.5 minutes, reported that 45.3% of people worked outside their county of residence. Meanwhile, congressional districts in the least mean travel time category reported a significantly smaller share of people who worked outside their county of residence. Only 18% of people in Nebraska’s 3rd congressional district worked outside their county of residence. The majority of people in these districts worked in their county of residence. Housing is a key issue for long commute times as it affects the distance between home and work. The results from NAHB’s HBGI showed that since the beginning of the COVID-19 pandemic housing demand has shifted from higher-density core areas to low-density markets, where homes are larger and more affordable. Additionally, a published study (2022) found that lack of affordable housing increased commute times as people moved to lower-cost housing in the outer reaches of major metro areas. To reduce commute times, the authors suggest creating and preserving dedicated affordable housing units, changing zoning to allow for more housing development, relaxing housing regulations to facilitate higher-density development, increasing government housing subsidies, and adopting tenant protections. Additional data for your congressional district are provided by the US Census Bureau here. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Travel Time to Work Across Congressional Districts2024-10-22T09:14:59-05:00

Minority Homeownership by Congressional District

2024-10-21T10:16:56-05:00

Homeownership is an important voter issue for the upcoming election with both presidential candidates putting forth housing policies to tackle the housing affordability crisis. In a recent NAHB post, the national homeownership rate sat at 65%, but there are large disparities in homeownership when broken down by race. For Black/African American households, the homeownership rate was 45%. Hispanic/Latino households fared slightly better at 51%, while all other minority households 1 had a homeownership rate of 55%. According to the 2023 American Community Survey (ACS), the district with the highest homeownership rate for Black/African American households was Maryland’s 5th District at 80%, although the overall homeownership rate for this district was slightly higher at 82%. In this district, 43% of the households were Black/African American. On the opposite spectrum, California’s 34th District had the lowest Black/African American homeownership rate in the nation at just 5%. This district also had one of the lowest overall homeownership rates in the country at 22%. The table below highlights the top five districts where Black/African American homeownership is the highest. Congressional DistrictBlack/African American Homeownership RateOverall Homeownership RateShare of PopulationMaryland, District 580%82%43%New York, District 475%81%16%California, District 4172%75%5%Virginia, District 1072%79%8%Florida, District 2171%79%11%Source: 2023 American Community Survey and NAHB calculations. The top 3 districts with the highest homeownership of Hispanics/Latino households were in the Midwest. Michigan’s 1st District held the highest homeownership rate for the Hispanics/Latino households (78%), although they constituted for 2% of the district’s population. The overall homeownership rate for the district was slightly higher (80%), however, in Texas’ 23rd District, Hispanics/Latino’s homeownership rate was slightly higher than the overall district rate at 75% compared to 74%. In this district, Hispanics/Latinos formed a significant portion of the population, accounting for nearly 60%. Congressional DistrictHispanic/Latino Homeownership RateOverall Homeownership RateShare of PopulationMichigan, District 178%80%2%Minnesota, District 676%81%3%Illinois, District 1676%80%5%Arizona, District 975%77%22%Texas, District 2375%74%58%Source: 2023 American Community Survey and NAHB calculations. For all other minority households, Minnesota’s 6th District stood out with the highest homeownership rate at 85%. This rate also exceeded the overall homeownership rate for this district of 81%. In fact, the top 10 congressional districts with the highest homeownership rate for this group exceeded the district-wide homeownership rates. Tennessee’s 8th District, which has the second-highest minority homeownership rate at 83%, surpassed the overall district rate by 11 percentage points. Congressional DistrictAll Other Race Homeownership RateOverall Homeownership RateShare of PopulationMinnesota, District 685%81%4%Tennessee, District 883%72%2%Virginia, District 1083%79%19%Texas, District 2281%76%20%Illinois, District 1481%76%12%Source: 2023 American Community Survey and NAHB calculations. There were also significant geographical variations of homeownership rates between each racial group with Black/African American households experiencing the largest variations across the country. Black/African American homeownership was concentrated in southern states while notably lower in the Midwest, Mountain West, and parts of the Northeast. In contrast, Hispanic/Latino homeownership tended to be higher in Southwest districts, while other minority groups maintained stronger rates nationwide. Overall, a consistent geographical pattern of homeownership across minority households can be found. For example, North Dakota and neighboring districts stood out with much lower minority homeownership. On the other hand, Southern states, where median sale prices per square foot for single-family detached homes were below the national average of $150, generally exhibited higher rates of minority homeownership. Additional housing data for your congressional district are provided by the US Census Bureau here. Footnote(s): All other minority households includes American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander and others. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Minority Homeownership by Congressional District2024-10-21T10:16:56-05:00
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