U.S. housing demographics are playing an increasingly important role in shaping household growth, as older owners hold onto homes longer while younger households enter the market primarily as renters, influencing inventory, turnover, and rental demand.

CHICAGO – Once households form, their starting point in housing matters just as much as the total number of new households being created, particularly in today’s uneven market.

In 2024, the U.S. added approximately 1.4 million new households compared with the prior year. That growth, however, was not evenly divided between renters and owners. Owner households rose by about 941,400, while renter households increased by roughly 463,380 — meaning the majority of net household growth came from homeowners rather than renters.

Age is a key driver behind this imbalance. On a year-over-year basis, much of the growth in homeowner households came from older Americans, especially those aged 65 and older. Longer life expectancy, aging in place, and a tendency to hold onto properties longer than in previous decades are all contributing factors. While these households are not actively buying, they significantly affect housing inventory, turnover rates, and availability.

Meanwhile, younger households continue to form primarily as renters. Persistent affordability challenges mean many first-time households are entering the market through rental housing instead of homeownership. This dynamic helps explain why rental demand remains elevated even as overall household formation continues at a healthy pace.

A longer-term, five-year view reinforces these trends. Since 2019, renter household growth has been concentrated among younger age groups, while ownership growth has been driven overwhelmingly by older households. Those aged 65–74 and 75+ account for a substantial share of the net increase in owner households, helping to explain slower housing turnover and uneven inventory recovery across markets.

For Realtors®, these U.S. housing demographics provide essential context. They clarify why rental markets remain tight, why first-time buyer pipelines are developing slowly, and why many markets feel constrained despite steady demand. Housing demand is shaped by multiple generations simultaneously, and understanding how households form, age, and move through the housing lifecycle is critical to identifying future challenges and opportunities.