Households can be one of two things: owned or rented. The homeownership rate equals the share of households that are owned. Therefore, a rise in the homeownership rate indicates a rise in the number of households electing to own their home rather than rent in a given area. Essentially, homeownership can provide an idea of where householders have the best chances of buying a home if they so desire.
Virginia is just now seeing the first significant increase in homeownership since before the housing crisis. According to annual data from the American Community Survey, two-thirds of occupied homes in Virginia were owned in 2017 – a 1.3 percent increase over 2016. Homeownership is increasing at an even greater rate among members of Virginia’s younger generation, who are catching up following the negative impact of the recession. Young adults, defined here as those age 15 to 34, had a homeownership rate increase of 1.6 percent between 2016 and 2017, reaching 34.8 percent. The homeownership rate among those other than young adults (greater than 34 years old) was 73.7 percent – an increase of 1.0 percent.
How does young Virginian homeownership vary across the state? What underlying causes are driving changes in the homeownership rate? What does this information indicate and imply for Virginia counties and cities? This commentary aims to explore the above questions.
Figure 1: Change in Homeownership Rate from the Previous Year in Virginia, 2006-2017
Source: Census Bureau American Community Survey, 1-year estimates