Rising Home Prices, High Mortgage Rates Push More Americans Toward Renting
The number of U.S. households that own their homes dropped slightly in the second quarter of 2025, marking the first year-over-year decline in nearly a decade, according to a new analysis by real estate brokerage Redfin.
Homeowner households fell by 0.1% to an estimated 86.2 million, while renter households climbed 2.6% to about 46.4 million — one of the largest increases in recent years, Redfin said, citing U.S. Census Bureau data.
In Los Angeles, the homeownership rate is 46.4% and the rentership rate is 53.6%.
The shift reflects a housing market where rising home prices, elevated mortgage rates, and economic uncertainty are making ownership less attainable. The median U.S. home sale price rose 1.4% year over year in July to $443,867, the highest on record for that month. Mortgage rates averaged 6.56%, more than double the historic lows seen during the pandemic.
“America’s homeowner population is no longer growing because rising home prices, high mortgage rates, and economic uncertainty have made it increasingly difficult to own a home,” said Chen Zhao, Redfin’s head of economics research. “People are also getting married and starting families later, which means they’re buying homes later—another factor that may be at play.”
While fewer people are buying, the nation’s overall homeownership rate has remained relatively steady, slipping to 65% in the second quarter from 65.6% a year earlier. The rentership rate increased to 35%, up from 34.4% in the same period.
Redfin noted that mortgage rates have begun to inch downward in recent weeks, falling from a peak of over 7% earlier this year. That decline may encourage some prospective buyers to return to the market.
Full charts and metro-level data are available in Redfin’s complete report here.
