The national homeownership rate sits at approximately 65.6% — meaning about two-thirds of American households own their home. But this national average masks a 35-percentage-point gap between the states with the highest and lowest rates. Understanding why some states have ownership rates above 70% while others hover around 55% reveals the interplay between housing costs, demographics, policy, and culture that shapes the American housing landscape.
Complete State Rankings
Tier 1: Above 70% — The Ownership States
| Rank | State | Rate | Median Price | Median Income | P/I Ratio |
|---|---|---|---|---|---|
| 1 | Delaware | 74% | $359,700 | $81,361 | 4.42 |
| 1 | Maine | 74% | $310,700 | $73,733 | 4.21 |
| 1 | Michigan | 74% | $236,100 | $69,183 | 3.41 |
| 1 | West Virginia | 74% | $163,700 | $55,948 | 2.93 |
| 5 | Idaho | 73% | $428,600 | $74,942 | 5.72 |
| 5 | Vermont | 73% | $332,000 | $81,211 | 4.09 |
| 7 | Iowa | 72% | $213,300 | $71,433 | 2.99 |
| 7 | Minnesota | 72% | $328,600 | $85,086 | 3.86 |
| 7 | New Hampshire | 72% | $415,400 | $96,838 | 4.29 |
| 7 | South Carolina | 72% | $272,900 | $67,804 | 4.02 |
Tier 2: 65-69% — The Middle
| State | Rate | Median Price | P/I Ratio |
|---|---|---|---|
| Mississippi | 71% | $169,800 | 3.13 |
| Wyoming | 71% | $298,700 | 4.12 |
| Alabama | 70% | $216,600 | 3.48 |
| Indiana | 70% | $225,900 | 3.25 |
| Utah | 70% | $517,700 | 5.54 |
| Kentucky | 69% | $211,800 | 3.47 |
| Missouri | 69% | $233,600 | 3.41 |
| Montana | 69% | $392,300 | 5.54 |
| Pennsylvania | 69% | $259,900 | 3.52 |
| Arizona | 68% | $411,200 | 5.32 |
| Florida | 68% | $381,000 | 5.20 |
| Maryland | 68% | $413,600 | 4.19 |
| Virginia | 68% | $382,900 | 4.26 |
| Wisconsin | 68% | $272,500 | 3.65 |
| Illinois | 67% | $263,300 | 3.28 |
| Ohio | 67% | $220,200 | 3.25 |
| Tennessee | 67% | $307,300 | 4.54 |
| Alaska | 66% | $347,500 | 4.01 |
| Colorado | 66% | $550,300 | 5.92 |
| Connecticut | 66% | $367,800 | 4.01 |
| Georgia | 66% | $323,000 | 4.33 |
| North Carolina | 66% | $308,600 | 4.36 |
| Oklahoma | 65% | $208,600 | 3.36 |
Tier 3: Below 65% — Majority Renter or Nearly So
| State | Rate | Median Price | P/I Ratio |
|---|---|---|---|
| New Jersey | 64% | $461,000 | 4.62 |
| Washington | 64% | $576,000 | 6.09 |
| Oregon | 63% | $484,800 | 6.05 |
| Texas | 63% | $296,900 | 3.92 |
| Hawaii | 62% | $846,400 | 8.88 |
| Massachusetts | 62% | $570,800 | 5.72 |
| Nevada | 60% | $441,100 | 5.78 |
| California | 56% | $725,800 | 7.60 |
| New York | 54% | $420,200 | 5.12 |
| DC | 39% | $715,500 | 6.61 |
What Determines Homeownership Rates?
1. Housing Costs (Strongest Factor)
The correlation between price-to-income ratio and homeownership rate is strong and negative. States with P/I ratios above 6.0 average a homeownership rate of 60%. States below 3.5 average 70%. California (P/I 7.60, ownership 56%) and West Virginia (P/I 2.93, ownership 74%) represent the extremes.
2. Urbanization
Heavily urban states and districts have lower ownership rates. DC (39%) is 100% urban. New York (54%) includes New York City, where the majority of residents rent. Rural and suburban states naturally have higher ownership because single-family homes on larger lots are the default housing type.
3. Demographics
States with older populations tend to have higher ownership rates — older households have had more time to accumulate wealth and purchase homes. Maine (74%, median age ~45) vs. DC (39%, median age ~34) illustrates this clearly.
4. Racial Composition
Due to the persistent racial homeownership gap — Black homeownership nationally is ~44% vs. ~74% for White households — states with larger Black and Hispanic populations tend to have lower overall rates. This reflects not demographic inevitability but generations of discriminatory lending, redlining, and wealth inequality.
💡 The Utah Anomaly
Utah maintains a 70% homeownership rate despite a price-to-income ratio of 5.54 — higher than many states with much lower ownership. The explanation: cultural factors (LDS community emphasis on homeownership and multi-generational support), larger household sizes sharing costs, high marriage rates, and strong building activity (Provo-Orem permits at 11.6/1,000).
The Texas Puzzle
Texas has one of the more affordable price-to-income ratios (3.92) and builds aggressively, yet its homeownership rate (63%) is below the national average. Key factors: a young, fast-growing population with many recent arrivals who haven't had time to buy; a large renter population in major metro cores (Houston, Dallas, Austin, San Antonio); and higher shares of Hispanic households who face elevated mortgage denial rates.
Homeownership and Wealth
Homeownership remains the primary wealth-building vehicle for middle-class Americans. The median homeowner household has a net worth of approximately $396,200 compared to $10,400 for the median renter household — a nearly 40:1 ratio. States with lower homeownership rates are, in aggregate, building less household wealth and contributing to wider economic inequality.
Explore state-by-state housing data on our state pages or compare metrics on the Affordability Dashboard.
Methodology
Homeownership rates from the Census Bureau's American Community Survey (2023 1-year estimates). Median home prices from Zillow ZHVI. Median household income from ACS. Price-to-income ratios calculated as ZHVI / median household income. DC is included as a "state" equivalent for comparison purposes.