12/31/2025
The U.S. homeownership rate is expected to decline further in 2026 after hitting a six-year low earlier this year, according to a new Realtor.com forecast.
Owner-occupied households fell to 65.0% in the second quarter of 2025, the lowest level since 2019, and are projected to slip to an annual average of 64.8% in 2026, despite modest affordability gains.
"Although we expect to see the cost of buying a home decrease modestly in 2026 for the first time since 2020, rents are also expected to decline," says Realtor. com Chief Economist Danielle Hale. "This means that potential first-time homebuyers trying to decide whether to buy or rent will find that renting offers significant near-term savings in most housing markets."