T
he number of homeowner households in the US has declined for the first time in nearly a decade, according to a new report from Redfin. In the second quarter, there were 86.2 million homeowner households, down 0.1% from the same period last year. This decline is attributed to affordability challenges and lifestyle trends.

    Renter households, on the other hand, have seen significant growth, increasing by 2.6% to 46.4 million. Economic uncertainty, high mortgage rates, and rising home prices are making it increasingly difficult for people to own a home, said Redfin economist Chen Zhao. Additionally, people are delaying major life events such as getting married and starting families, which means they're buying homes later.

    The National Association of Realtors' data also supports this trend, showing that the share of first-time buyers has fallen sharply in recent years, and the median age of first-time buyers is at a record high. Some areas are still dominated by homeowners, with Baton Rouge, Louisiana having the highest homeownership rate of 78.6%.

    However, Redfin's report suggests that home prices may be softening, which could lead to more opportunities for renters to start looking at listings again. Compass Chief Economist Mike Simonsen expects overall sales prices to be down annually by the end of the year, and notes that prices are already softening in many areas. He predicts that this trend will become a national headline in a few months.