Homeownership rates in the South have seen a slight decline, dropping to 67.3% in the first quarter of 2024 from 67.8% in the previous quarter. This is the lowest level of homeownership recorded in the region since the first quarter of 2023, according to the latest data from the Census Bureau.
Whats happening: This dip in homeownership rates comes amid increasing mortgage rates, which continue to challenge affordability in the housing market. According to the National Association of Realtors, the Housing Affordability Index in the South fell by four points to 102.5 in March, signaling a worsening scenario for potential buyers.
Be smart: Higher borrowing costs mean that fewer people can afford to buy homes. This dynamic is not unique to the South, but it underscores a broader trend affecting the national real estate market.
Yes, but: Despite these challenges, the South’s homeownership rate is still more robust compared to other regions. The Northeast and the West have lower rates of 62.6% and 61.5%, respectively.
Affordability matters: The Midwest currently leads with the highest homeownership rate at 69.4% and the best affordability index at 139.5, as of the first quarter of 2024. This indicates a direct correlation between housing affordability and homeownership rates across different regions.
Bottom line: As rates continue to rise, the dream of homeownership is becoming increasingly difficult for many Americans. This trend could have significant economic and social implications, affecting everything from consumer spending to the broader housing market stability.