Homeownership Dreams Soured by NY and NJ 10 Year Decline

New research has revealed the states with the most significant increase in homeownership since 2014, with Maryland taking the top spot.

Real estate experts Agent Advice analyzed a recent housing vacancy and homeownership survey from government census data to determine the states that had experienced the most significant increase in homeownership rates from 2014 to 2023.

The state that clinched the top spot was Maryland with a 12.15% increase in homeownership from 2014 to 2023. In 2014, 65% of occupants were reported as owning their homes, which climbed to 72.9% in 2023. This could be due to a strong job market and lower mortgage rates, making Maryland’s housing market one of the most accessible.

In second place was North Dakota, which had a 12.05% increase in homeownership. Homeownership rates rose from 61.4% in 2014 to 68.85% in 2023. North Dakota’s growing economy and affordable housing options make it an attractive state for anyone looking to buy a house.

Following in third was Montana, with a homeownership increase rate of 11.93%. Montana experienced a 66.2% homeownership rate in 2014, rising to 74.1% in 2023. Montana’s rising appeal could result from its strong economy, and its beautiful natural landscapes are complex for budding homeowners to resist.

Ranking fourth was Kentucky, which saw a 9.55% increase in homeownership from 2014 to 2023. The state reported a 66% homeownership rate in 2014, which had risen to 72.3% in 2023. Kentucky’s southern charm and affordable housing selection are likely reasons for its burgeoning popularity among homeowners.

Rounding out the top five was Alabama with a 9.52% increase in homeownership from 2014 to 2023. Alabama’s homeownership rate was at 73.6% in 2014, which grew to 9.52% in 2023. Alabama is a great choice for anyone looking to own a home in the heart of the South while also enjoying great value properties for money.

The remaining top ten states with the biggest increase in homeownership were Nevada (9.15%), Arizona (8.41%), Washington (6.92%), Tennessee (6.8%) and Louisiana (6.01%).

On the other end of the spectrum, New Jersey saw the biggest decrease in homeownership with –5.47%. The state reported a 64% homeownership rate in 2014 which fell to 60.5% in 2023. Factors such as high property taxes and an expensive housing market are contributing towards a shift towards renting in New Jersey, with rentals being the most popular option in the primarily urban state.

Another state that experienced a decrease in homeownership was New York with –3.58%. In 2014, 53.1% of occupants were reported as owning their home, which dropped to 51.2% in 2023. Steep property prices and the expensive cost of living provide challenges for impending homeowners, with many NYC residents or commuters preferring to rent in or outside the bustling city.

Missouri also reported a decrease in homeownership from 2014 to 2023, with figures falling from 72.9% in 2014 to 70.5% in 2024, a –3.29% change. Missouri housing rates are likely decreasing due to steadily increasing housing prices that make renting a more attainable choice for many residents.

Rounding out the bottom five were Colorado, which reported homeownership rates falling from 64.8% in 2014 to 62.7% in 2023 (a -3.24% difference) and Oklahoma, where rates went from 70.7% to 69% (-2.4%).

In total, 10 states experienced a decrease in homeownership rates. The remaining five states were Utah (-2.12%), North Carolina (-0.60%), Kansas (-0.58%), Ohio (-0.30%) and Wisconsin (-0.30%).

Commenting on the findings, a spokesperson for Agent Advice said: 

“The vast majority of states experienced an increase in homeownership rates from 2014 to 2023, suggesting that more and more people are interested in owning their homes as opposed to renting. 

“Additionally, the percentage change of the states with biggest homeownership increase are more significant than the change of the states with the biggest decrease. The top nine states all increased by bigger values than the bottom state decreased by, further demonstrating the rising popularity of homeownership. 

“Overall, the South saw the biggest increase in homeownership overall, with an average rate increase of 3.94%. This could potentially be due to the region’s affordability and vast natural beauty, making it appealing to budding homeowners.  

“On the other hand, the Northeast had the smallest rise in homeownership with an average increase of just 0.75% – likely due to the region’s notoriously high expenses. 

“In particular, New York experienced a drop in homeownership rates despite having the lowest homeownership levels in 2014. This is a testament to how unaffordable the state is for many, and the popularity of rentals in the area. This could be a result of people perceiving the state as a more temporary home – particularly in New York City, which is home to almost half of the state’s population.”