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n 2025, U.S. homeownership fell for the first time in almost a decade, according to Redfin. As of April 1, 86.19 million Americans owned homes, a 0.1 % drop from 86.28 million in the same period in 2024. The last decline occurred in Q2 2016, when owners numbered 74.36 million, down 0.1 % from 74.4 million in 2015.

    Redfin’s chief economics researcher, Chen Zhao, attributes the slide to a combination of inflation, rising interest rates, higher mortgage costs, and soaring property prices that have pushed many out of the market. “Mortgage rates spiked in 2022 after inflation and rates began to climb,” Zhao said. “We’ve stayed at these elevated levels for three years, and that’s why the ownership rate is falling.” She added that high real‑estate prices have priced many potential buyers out entirely.

    The share of renters has edged up, moving from 34.9 % on Jan 1 to 35 % in Q2 2025. Zhao notes that rents are relatively cheaper compared to buying, making renting a more attractive option for many, even though many families still feel rent‑burdened. Younger Americans are also delaying marriage and family formation, which postpones home purchases and contributes to the rise in renter households.

    City‑level data show stark contrasts. New York City recorded a 49.4 % homeownership rate in Q2 2025, the second‑lowest among the country’s 75 largest metros, after Los Angeles at 46.4 %. NYC’s rate had dipped to 47 % on Jan 1, its lowest in at least six years, but has since begun to climb. In 2023, 51.3 % of New Yorkers owned homes, up from 50.6 % in 2022.

    Overall, the trend points to a tightening housing market where higher costs and delayed life milestones are eroding the traditional American Dream of homeownership.