Data reveals booming ownership in secondary metros - and setbacks in major cities
The first quarter of 2025 is painting a clear picture of where homeownership is holding strong, and where it’s slipping, as economic pressures weigh on US housing markets.
A new study by SmartAsset ranks 75 US metro areas by homeownership rate, revealing major contrasts in ownership trends across the country.
Two metro areas lead the country with over 80% of residents owning their homes: North Port-Bradenton-Sarasota, FL (82.3%) and Rochester, NY (81.9%). While North Port-Bradenton-Sarasota saw a slight dip from last year, Rochester’s rate jumped more than six points, up from 75.5%.
Meanwhile, the New York City metro continues to lag with a 47% homeownership rate, the lowest in the country. Other high-cost areas like San Francisco and Los Angeles also fall near the bottom, each reporting just 49% homeownership.
The Charleston, SC area posted the largest year-over-year gain, climbing from 59.4% to 75.4%, while Toledo, OH saw the steepest drop, down from 82.5% to 69.2% in the same period.
Economic jitters dampen Spring activity
The housing market is showing signs of consumer hesitation. Pending home sales dropped 3.4% year over year in the four weeks ending May 11, according to a Redfin report. Elevated mortgage rates and economic unease have led many potential buyers to pause.
“There’s a lot of doubt and hesitation among house hunters,” said Meme Loggins, a Redfin Premier agent in Portland, OR. “Some buyers are backing out due to fears about a recession or layoffs.”
Even as the US government reduces tariffs on China, Redfin’s head of economics, Chen Zhao, said that “mortgage rates are unlikely to fall unless all new tariffs are eliminated, or if the country falls into a fairly severe recession.”
Read next: Trade uncertainty blamed for fall in single-family housing starts in April
The number of homes for sale is up 14.3% year over year, while new listings have risen 5.1%. More listings are sitting on the market longer, leading to a rise in seller concessions and price flexibility. Nearly half of home sellers are now offering some form of concession, including rate buydowns or repair credits.
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