Miami ranks among the metro areas with the lowest percentage of homeowners in Florida and the nation, according to a new report from the real estate brokerage Redfin.
Less than 58% of Miami metro area households are homeowners, the report found. Los Angeles had the lowest percentage at 46.4%, followed by New York (49.4%) and San Diego (51.7%).
The Miami–Fort Lauderdale–Pompano Beach region ranked ninth among metro areas nationwide.
Overall, the report found that, for the first time in nearly a decade, the number of homeowner households in the United States has slightly declined. The number of homeowner households fell by 0.1% year-over-year in the second quarter to an estimated 86.2 million, marking the first such drop since 2016.
This marginal decrease stands in stark contrast to the significant rise — one of the largest in recent years — in renter households, which grew by 2.6% to an estimated 46.4 million. The findings are based on a Redfin analysis of U.S. Census Bureau data. The report was released Wednesday.
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The report attributes the shift to a combination of high home prices, rising mortgage rates, and general economic uncertainty.
“America’s homeowner population is no longer growing because rising home prices, high mortgage rates and economic uncertainty have made it increasingly difficult to own a home,” said Chen Zhao, Redfin’s head of economics research.
Zhao also noted that demographic shifts may be a factor, adding: “People are also getting married and starting families later, which means they’re buying homes later — another factor that may be at play.”
The financial barriers to homeownership have been significant. The median home sale price hit a record high for July at $443,867, a 1.4% increase from the previous year. Meanwhile, mortgage rates are currently at 6.56%, more than double their pandemic-era low.
This environment has led more Americans to choose renting over buying, thereby forgoing the opportunity to build home equity, a key method of wealth accumulation.
While the number of homeowners has decreased, the overall homeownership rate has remained relatively stable.
As of the second quarter, the rate was 65%, a slight dip from 65.6% a year earlier. The rentership rate saw a corresponding slight increase, rising to 35% from 34.4% a year ago.
Despite the recent trends, there is some positive news for prospective buyers. The report notes that mortgage rates have begun to fall in recent weeks, dropping from a peak of over 7% earlier this year.
This decline “appears to be bringing some buyers off the sidelines,” according to Redfin.
