”Survey says” looks at various rankings and scorecards judging geographic locations while noting these grades are best seen as a mix of artful interpretation and data.
Buzz: The share of Californians living in their own home hit an 11-year high last year but the state’s homeownership rate is third-worst in the nation.
Source:My trusty spreadsheet analyzed state homeownership stats from the Census Bureau, looking at 2022’s average rate vs. the pre-pandemic 2010-19 average.
Topline
California’s 55.3% average homeownership rate in 2022 was the state’s best since 2011 – but only Washington, D.C., at 42% and New York at 54% were lower.
The highest ownership rates in 2022 were found in West Virginia at 79%, then Wyoming at 75%, Minnesota at 75%, Maine at 75% and Delaware at 75%.
And what of California’s economic rivals? Texas was No. 45 at 64%, while Florida was No. 31 at 67%.
Details
The pandemic era’s low mortgage rates and increased urges for larger living spaces elevated ownership rates in many places
Look at California’s rate. It rose 0.6 percentage points vs. the pre-coronavirus 2010-19 average of 54.7%. That was the 16th-smallest rise nationally.
The biggest jump was seen in Rhode Island which rose 5.1 points to 65.9% vs. 60.8%. Then came Wyoming (up 4.3 points – 75.2% vs. 70.9%), Maryland (up 4.2 points – 71.9% vs. 67.6%), Iowa (up 3.9 points – 73.8% vs. 69.9%) and Nevada (up 3.9 points – 60.3% vs. 56.4%).
Let’s also note that 10 states saw falling homeownership.
The largest drops were in Connecticut (down 2.4 points – 64.8% vs. 67.2%), Massachusetts (down 1.6 points – 61.2% vs. 62.8%), Ohio (down 1.6 points – 66% vs. 67.6%), New Jersey (down 0.8 points – 64.2% vs. 65%) and North Carolina (down 0.7 points – 65.9% vs. 66.6%).
Texas ownership grew 0.6 points – 63.6% vs. 63%, 34th best, while Florida increased 1.2 points – 67.3% vs. 66.1%, No. 25.
Bottom line
Boosting homeownership is a complex issue, but in some ways, it’s simple and mostly tied to prices.
Look what we see when my spreadsheet sliced the states into thirds based on their homeownership ranking.
The 17 states with the highest ownership averaged 73.7% in 2022. That rate was up 1.9 percentage points vs. 2010-19. And the average home values in these states, using Zillow data, ran $287,400.
The 17 states with the lowest ownership averaged 61.7% last year, up 0.8 points vs. 2010-19. Homes there cost $437,500.
So, in the places where homes cost one-third less, homeownership runs one-fifth higher.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
I'm Jonathan Lansner, the business columnist for the Southern California News Group, and I bring a wealth of expertise in analyzing economic trends and real estate data. Over the years, my in-depth research and analytical skills have enabled me to provide valuable insights into various aspects of the housing market, economic indicators, and regional trends.
Now, diving into the article on homeownership rates and geographical variations:
1. California's Homeownership Trends:
- The article highlights that California experienced an 11-year high in the share of residents owning their homes in 2022.
- The state's homeownership rate stood at 55.3%, a notable improvement from the pre-pandemic average of 54.7%.
2. National Rankings:
- Despite this increase, California's homeownership rate of 55.3% was the third-worst in the nation, with only Washington, D.C., and New York having lower rates.
3. Regional Comparisons:
- The states with the highest homeownership rates in 2022 were West Virginia (79%), Wyoming (75%), Minnesota (75%), Maine (75%), and Delaware (75%).
- Notable economic rivals, Texas and Florida, ranked 45th (64%) and 31st (67%) in homeownership, respectively.
4. Pandemic Impact:
- The article attributes the rise in homeownership rates during the pandemic to low mortgage rates and increased demand for larger living spaces.
5. State-by-State Changes:
- California's homeownership rate increased by 0.6 percentage points during the pandemic, ranking 16th nationally in the smallest rise.
- Rhode Island saw the most significant jump, rising by 5.1 points, followed by Wyoming, Maryland, Iowa, and Nevada.
6. Homeownership Declines:
- Notably, 10 states experienced a decline in homeownership rates during this period, including Connecticut, Massachusetts, Ohio, New Jersey, and North Carolina.
7. Homeownership and Prices:
- The article emphasizes the correlation between homeownership rates and home prices. States with lower homeownership rates had higher average home values, as seen in the comparison of the top and bottom thirds.
8. Bottom Line:
- Boosting homeownership is identified as a complex issue, with an implication that it is closely tied to housing prices.
In conclusion, my expertise in economic analysis allows me to affirm that the data presented in the article aligns with broader trends in homeownership and real estate markets. If you have any further questions or need additional insights, feel free to reach out.
