Urban Institute - Headship and Homeownership: What Does the Future Hold?

This longitudinal study of household formation and home ownership rates from 2010 to 2030 reveals that new renters will outpace new homeowners in the coming decades and, that, while there will still be more owners than renters, the homeownership rate will continue to decline. This will create intense competition for rental housing. In addition, the aging of the population will also create the urgency to develop policies to allow the 20 million new seniors that we will have by 2030 to stay in their homes, as most want to do. The study also projects that African Americans will fall further behind and Hispanics will improve their rates of homeownership. These estimates make it clear that we do not have adequate policies in place to support the rental surge and adequate affordable rental housing and homeownership for all, regardless of race and ethnicity.

Key findings:

- For the next 15 years, new renters will outpace new homeowners.
- The headship rate—the pace at which people create new households—is declining further.
- The overwhelming majority of new households formed from 2010 to 2030 will be nonwhite.
- The overwhelming majority of new homeowners will also be nonwhite.
- The number of senior households will expand dramatically from 2010 to 2030.

Full Report: Headship and Homeownership: What Does the Future Hold? | Urban Institute