Young Homeownership Rises to 37.9% in Q4 2025 Amid Easing Rates, Signals Turnaround

Youth homeownership reached 37.9% in Q4 2025, up 1.6 percentage points from 36.3% in Q4 2024, the highest two-year level. The rebound follows years of declines driven by rates above 7% and rigid price growth, with easing borrowing costs and slight price softening cited as key factors. However, two-thirds of young households still rent, and the rate remains 6.6 percentage points below the 43.6% peak in 2004. Context: The 2008 crash and Fed tightening since 2022 depressed the under-35 rate to 34.1% in 2016, before a slow climb through 2018–2021, a pandemic-driven spike, then another slide through 2022–2023. Regionally, the Midwest leads at 71.3% in Q4 2025, outpacing the West (60.8%) and the South (66.9%). Ohio gained 12,000 residents in 2025 after a 2021 loss of over 32,000, and Michigan shifted from a 2021 loss of 28,000 to a small gain, reflecting a migration back to the Midwest as coastal markets remain less accessible for first-time buyers.