Study ranks Colorado 47th in 10-year homeownership trend

A study on the changing rates of U.S. homeownership the past decade puts Colorado 47th among all states, with a reported drop in homeownership from 64.8% in 2014 to 62.7% in 2023, a -3.24% change during the 10-year period.

Agent Advice, a real estate school and media company, analyzed a recent housing vacancy and homeownership survey from government census data to determine states’ changes in homeownership rates from 2014 to 2023.

Maryland had the most significant rise in homeownership over the same span, with an increase of 12.15%. Following in second was North Dakota with a 12.05% increase, with Montana third with an 11.93% increase.

The survey analysts speculated that Maryland’s homeownership increase, from 65% in 2014 to 72.9 in 2023, was likely due to a strong job market and lower mortgage rates (during the study period), making Maryland’s housing market one of the most accessible.

Second in the ranking was North Dakota. Its homeownership rate rose from 61.4% in 2014 to 68.85% in 2023. The state’s growing economy and affordable housing options were cited as likely factors.

The study’s analysts speculated that No. 3 Montana’s rise from a 66.2% homeownership rate in 2014 to 74.1% in 2023 likely was a result of its strong economy and the appeal of its scenic outdoors.

Kentucky (9.55% increase in homeownership from 2014 to 2023) and Alabama (9.52%) rounded out the top five.

At the other end of the spectrum, New Jersey saw the biggest decrease in homeownership, dropping 5.47%. The state reported a 64% homeownership rate in 2014 and fell to 60.5% in 2023. Factors such as high property taxes and an expensive housing market were cited for a shift toward renting in New Jersey.

Ranking 49th was New York, with a 3.58% drop. In 2014, 53.1% of occupants were reported as owning their homes; that fell to 51.2% in 2023. Steep property prices and the high cost of living, along with many New York residents or commuters preferring to rent in or outside the city, were the factors cited.

Just below Colorado, No. 48 Missouri showed homeownership falling from 72.9% in 2014 to 70.5% in 2024, a –3.29% change. The drop was attributed to steadily increasing housing prices in the Show Me State.

“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 instead of renting,” said a spokesperson for Agent Advice. “Overall, the South saw the biggest increase in homeownership, 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.”

The study was based on data from the Current Population Survey/Housing Vacancy Survey for the U.S. Census Bureau, quarterly homeownership raters. Figures from the last quarter of 2014 and the last quarter of 2023 were calculated to provide a percentage increase or decrease across the 10 years.