New research has revealed the states with the most significant increase in homeownership since 2014, with Maryland taking the top spot and in seventh was Arizona, with an 8.41% increase.
Real estate experts Agent Advice analyzed a recent housing vacancy and homeownership survey from government census data to determine the states that had experienced the most significant increase in homeownership rates from 2014 to 2023.
Maryland clinched the top spot, with a 12.15% increase in homeownership from 2014 to 2023. In 2014, 65% of occupants were reported as owning their homes, which climbed to 72.9% in 2023. This could be due to a strong job market and lower mortgage rates, making Maryland’s housing market one of the most accessible.
In second place was North Dakota, which had a 12.05% increase in homeownership. Homeownership rates rose from 61.4% in 2014 to 68.85% in 2023. North Dakota’s growing economy and affordable housing options make it an attractive state for anyone looking to buy a house.
Following in third was Montana, with a homeownership increase rate of 11.93%. Montana experienced a 66.2% homeownership rate in 2014, rising to 74.1% in 2023. Montana’s rising appeal could result from its strong economy, and its beautiful natural landscapes are complex for budding homeowners to resist.
Ranking fourth was Kentucky, which saw a 9.55% increase in homeownership from 2014 to 2023. The state reported a 66% homeownership rate in 2014, which had risen to 72.3% in 2023. Kentucky’s southern charm and affordable housing selection are likely reasons for its burgeoning popularity among homeowners.
Rounding out the top five was Alabama, with a 9.52% increase in homeownership from 2014 to 2023. Alabama’s homeownership rate was at 73.6% in 2014, which grew to 9.52% in 2023. Alabama is an excellent choice for anyone looking to own a home in the heart of the South while also enjoying great value properties for money.
Top 10 states with the most significant increase in homeownership
|
Rank |
State |
Homeownership rate – 2014 4th quarter |
Homeownership rate – 2023 4th quarter |
Percentage increase/ decrease |
|
1 |
Maryland |
65% |
72.9% |
12.15% |
|
2 |
North Dakota |
61.4% |
68.8% |
12.05% |
|
3 |
Montana |
66.2% |
74.1% |
11.93% |
|
4 |
Kentucky |
66% |
72.3% |
9.55% |
|
5 |
Alabama |
67.2% |
73.6% |
9.52% |
|
6 |
Nevada |
56.8% |
62% |
9.15% |
|
7 |
Arizona |
61.8% |
67% |
8.41% |
|
8 |
Washington |
62.1% |
66.4% |
6.92% |
|
9 |
Tennessee |
67.6% |
72.2% |
6.80% |
|
10 |
Louisiana |
64.9% |
68.8% |
6.01% |
On the other end of the spectrum, New Jersey saw the biggest decrease in homeownership, with –5.47%. The state reported a 64% homeownership rate in 2014, which fell to 60.5% in 2023. Factors such as high property taxes and an expensive housing market are contributing to a shift towards renting in New Jersey, with rentals being the most popular option in the primarily urban state.
Another state that experienced a decrease in homeownership was New York, with –3.58%. In 2014, 53.1% of occupants were reported as owning their homes, which dropped to 51.2% in 2023. Steep property prices and the expensive cost of living challenge impending homeowners, with many NYC residents or commuters preferring to rent in or outside the bustling city.
Missouri also reported a decrease in homeownership from 2014 to 2023, with figures falling from 72.9% in 2014 to 70.5% in 2024, a –3.29% change. Missouri housing rates are likely decreasing due to steadily increasing housing prices that make renting a more attainable choice for many residents.
The bottom five were Colorado, which reported homeownership rates falling from 64.8% in 2014 to 62.7% in 2023 (a -3.24% difference) and Oklahoma, where rates went from 70.7% to 69% (-2.4%).
Ten states experienced a decrease in homeownership rates. The remaining five were Utah (-2.12%), North Carolina (-0.60%), Kansas (-0.58%), Ohio (-0.30%), and Wisconsin (-0.30%).
Commenting on the findings, a spokesperson for Agent Advice said, “The vast majority of states experienced an increase in homeownership rates from 2014 to 2023, suggesting that more and more people are interested in owning their homes instead of renting.
“Additionally, the percentage change of the states with the most considerable homeownership increase is more significant than those with the biggest decrease. The top nine states increased by more important values than the bottom states decreased by, further demonstrating the rising popularity of homeownership.
“Overall, the South saw the biggest increase in homeownership, with an average rate increase of 3.94%. This could potentially be due to the region’s affordability and vast natural beauty, which make it appealing to budding homeowners.
“On the other hand, the Northeast had the smallest rise in homeownership with an average increase of just 0.75% – likely due to the region’s notoriously high expenses.
“In particular, New York experienced a drop in homeownership rates despite having the lowest homeownership levels in 2014. This is a testament to how unaffordable the state is for many, and the popularity of rentals in the area. This could result from people perceiving the state as a more temporary home – particularly in New York City, which is home to almost half of the state’s population.”
Speak Your Mind
You must be logged in to post a comment.