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A Quarter of Remodelers Started ADUs Over Past Twelve Months – Eye On Housing

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When asked if remodelers started a project involving an Accessory Dwelling Unit (ADU) over the past twelve months, 24% indicated that they were building an addition for use as an ADU and 23% indicated that they were converting an existing space to an ADU, according to NAHB’s Remodeling Market Index (RMI). While the percentage shares for each category rose compared to the last time NAHB asked the question in Q1 2019, a large majority of remodelers still did not start ADUs.

When looking at how each region answered this question, the Northeast was most likely to have remodelers constructing ADUs, with at least one-third indicating both project types (i.e., building an addition and converting existing space), followed by the West with at least 27% of remodelers for both types. Both regions have states with relatively nonrestrictive ADU laws to encourage further production. ADU projects were least likely to occur in the Midwest, with less than 20% of remodelers  engaging in this activity.

When asked about the evidence that helped them conclude that these projects involved an ADU, 71% indicated ‘Project involved building a detached structure,’, followed by ‘Renovated area has its own separate entrance’ (67%) and ‘Renovated area has its own kitchen facilities’ (58%). The largest change compared to Q1 2019 was for ‘Project involved building a detached structure,’ which rose 28 percentage points in Q3 2026.

Sixty-two percent of ADU projects cost $150,000 or more, which is more than double the share in Q1 2019 (28%). According to NAHB’s Remodeling Input Price Index (RIPI), input costs for remodelers are up over 51% from Q1 2019 to Q3 2026.



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Slabs Overtake Basements in the East North Central Division – Eye On Housing

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Nearly three-quarters of new single-family homes started in 2025 were built on slab foundations, according to NAHB analysis of the U.S. Census Bureau’s Survey of Construction (SOC). The share of homes built on slabs remained unchanged from the previous year at 73%, maintaining the wide gap between the use of slabs and the other types of foundations. Meanwhile, the share built with full or partial basements continued its long-term decline, decreasing 0.6 percentage points to 16.4% of new single-family homes. The share of crawl spaces, on the other hand, increased a marginal 0.5 percentage points from 2024 to 9.7%.

Foundation type continues to follow regional climate patterns. In colder northern divisions, where building codes require foundations to extend below the frost line, basements are more common. In 2025, full or partial basements accounted for 67.7% of new single-family homes started in New England (67.7%), 64.4% in West North Central, and 48.7% in Middle Atlantic.

Among these three divisions, West North Central recorded the largest average finished basement area at 957 square feet (sq. ft.), followed by Middle Atlantic (830 sq. ft.) and New England (810 sq. ft.). However, each was below the national average basement area of 1,143 sq. ft. for a finished basement area.

In warmer regions, slab foundations are generally favored for their affordability and efficiency. Nearly all new single-family homes in West South Central (97.7%), Pacific (86.0%), and South Atlantic (85.7%) divisions were built on slabs in 2025. The cost advantages of slabs have also led to increased adoption in some northern divisions. The most noticeable shift occurred in East North Central division, where slabs surpassed basements as the most common foundation type in 2025. Just over half of new-single family homes started in the division were built on slabs, while a sizable share of homes built were still built with full or partial basements at 43.0%.

Crawl space foundations, by contrast, have generally been declining. Although the East South Central and Pacific divisions have historically led in crawl space usage, both experienced noticeable sharp declines following the pandemic. In the Pacific division, the share of crawl space fell from a peak of 45% in 2012 to only 12% in 2025.

The Mountain division has moved in the opposite direction, recording a gradual rebound in crawl space use. Its share reached 20% in 2025, the highest since 2007, and ranked second among the nine Census divisions. Meanwhile, divisions such as East North Central, New England, and West South Central have consistently had low construction of crawl spaces, with shares of new homes started lesser than 10%.



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Share of New Homes with Decks Inches Upward – Eye On Housing

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The share of new homes with decks inched upward, from an all-time low of 17.4% in 2024 to 17.8% in 2025, according to NAHB tabulation of data from the HUD/Census Bureau Survey of Construction (SOC).

Historically, the share of new homes with decks dropped significantly between 2017 (23.8%) and 2021 (17.5%). Since then, the share has remained largely stable, fluctuating only within the relatively narrow band between 17.4% and 17.8%. Against that backdrop, the share of new homes with patios was generally rising, until it began edging downward in 2024 and 2025. However, prior to 2021, there was an extended period when patios on new homes were trending upward while decks were trending downward. This resulted in a -0.85 correlation between the percentages of new homes with patios and decks over the period of 2005 through 2025—indicating that patios and decks have functioned as substitutes for each other over time.  In the SOC, the definitions of the two are fairly similar. A deck is a floored area without a roof, not sitting directly on the ground. A patio is a floored area, with or without a roof, sitting directly on the ground.

Decks and patios also tend to function as substitutes for each other across geographic areas. Among single-family homes started in 2025, decks were noticeably more common in places where patios were comparatively rare. For example, only 26% of the homes in the New England Census Division included patios, while a high of 73% came with decks. Conversely, a divisional high 77% of new homes included patios in the West South Central, while only 2% included decks. Across all nine divisions, the correlation between the percentages of new homes with decks and patios was -0.76.

After New England, decks on new homes were most common in the West North Central (43%), Middle Atlantic (36%) and East South Central (29%) divisions.

Additional detail on the characteristics of new-home decks is available from the Annual Builder Practices Survey (BPS) conducted by Home Innovation Research Labs.

In addition to size, geographic differences in new home deck materials continue to exist. On a square foot basis, builders favor treated wood in the South Atlantic, East South Central, and Mountain divisions. In New England and the East North Central, composite material predominates. In the Middle Atlantic and West North Central, builders are close to evenly split between treated wood and composite. In the West South Central and Pacific divisions, where decks on new homes are comparatively rare, concrete is the top choice.

Of course, decks can be—and often are—added after the home itself is built. In the fourth-quarter 2025 survey for the NAHB Remodeling Market Index, decks tied for sixth place on the list of most common  projects reported by professional remodelers.



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September 2026 – Eye On Housing

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State-level employment data for September continued to show a mixed labor market, with job gains and losses split across the county. Although national nonfarm payroll employment increased modestly, year-over-year job growth varied considerably across states. Construction employment continued to expand nationally, but state-level trends remained uneven. Meanwhile, unemployment rates highlighted persistent differences in labor market conditions across the country, with rates ranging from 2.0% in South Dakota to 5.6% in the District of Columbia.

In September, nonfarm payroll employment increased in 23 states and the District of Columbia (D.C.) compared to August, while 25 states recorded declines. Hawaii and West Virginia reported no change. According to the Bureau of Labor Statistics, total U.S. nonfarm payroll employment increased by 29,000 jobs in September, following a gain of 133,000 jobs in August. Through September, monthly payroll gains have averaged 68,000 jobs per month for this year based on the current data vintage.

On a month-over-month basis, employment gains were led by New York (+19,600), followed by New Jersey (+14,900) and South Carolina (+12,500). In contrast, the 25 states that recorded losses collectively shed 100,100 jobs, with Wisconsin posting the largest decline (-13,700). In percentage terms, South Carolina recorded the strongest increase (+0.5%), while Wisconsin experienced the largest decrease (-0.4%) between August and September.

Over the 12 months ending in September, total nonfarm employment increased by 496,000 jobs nationwide, representing a 0.3% gain. Job gains ranged from 400 in Hawaii to 154,300 in Texas. Collectively, nine states and D.C. lost 86,300 jobs over the past 12 months, with D.C. recording the largest decline (-25,800).

In percentage terms, job growth ranged from 0.1% in New Jersey, Maine, and Hawaii to 2.3% in South Carolina. Michigan, West Virginia, Georgia, and Kentucky reported no change over the past 12 months. Among states experiencing employment declines, losses ranged from 0.1% in Vermont, Oregon, and Rhode Island to 1.0% in Montana. D.C., however, recorded a substantially larger decline of 3.5%.

Construction Employment

Construction employment —which includes both residential and non-residential construction, posted a net gain in September. Twenty-five states added construction jobs compared to August, while 21 states lost jobs; four states and D.C. reported no change. Oregon recorded the largest monthly gain (+2,000), while Wisconsin recorded the largest loss (-3,300). Overall, the construction sector added a net 11,000 jobs nationwide in September. In percentage terms, Rhode Island recorded the strongest monthly increase (+2.2%), while Alaska experienced the steepest decline (-3.3%).

Year-over-year, construction employment increased by 109,000 jobs nationwide, a 1.3% gain from September 2025. Louisiana led all states with an increase of 18,800 construction jobs, while Georgia recorded the largest loss (-4,900). In percentage terms, Louisiana posted the strongest annual growth in construction employment (+13.9%), while Alaska experienced the largest decline (-5.3%).

State Unemployment Rate

The state unemployment rate is a key indicator of labor market conditions, measuring the share of the labor force that is actively seeking work but unable to find employment. Higher unemployment rates generally signal weaker economic conditions, while lower rates indicate tighter labor markets that may contribute to upward wage pressures.

South Dakota recorded the nation’s lowest unemployment rate at 2.0%, while D.C. posted the highest rate at 5.6%. The elevated unemployment rate in D.C. reflects significant federal workforce reductions and layoffs that occurred during 2025. North Dakota, New Hampshire, Vermont, Hawaii, Nebraska, and Wyoming also reported unemployment rates of 3.0% or below. Meanwhile, Michigan, Oregon, Connecticut, and California recorded unemployment rates of 5.0% or higher.



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Market Share for Modular and Other Non-Site Built Housing in 2025 – Eye On Housing

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The total market share of non-site-built single-family homes (modular and panelized) was just 3% of single-family homes in 2025, according to NAHB analysis of completion data from the U.S. Census Bureau’s Survey of Construction (SOC). This matched the 3% market share recorded in both 2023 and 2024. The market share of non-site-built homes has been steadily declining since the early 2000s, despite growing interest in non-site-built construction. This low market share runs counter to some media commentary that suggests recent gains in off-site construction. Nonetheless, there is potential for market share gains in the years ahead as builders seek to improve productivity in the residential construction sector.

In 2025, approximately 30,000 single-family homes were built using modular (14,000) and panelized/pre-cut (16,000) construction methods, out of 975,000 completed single-family homes. It is worth noting that the Census Bureau’s definitions of off-site construction are relatively narrow. In a separate survey, the Home Innovation Research Labs‘ Survey of U.S. Home Builders reports a higher share for panelized construction (5%–12%) due to its broader definition of “panelized” construction.

While the Census-measured market share is small, there is potential for expansion. The 3% market share recorded in 2025 represents a decline from the years preceding the Great Recession. In 1998, 7% of completed single-family homes were built using modular (4%) or panelized (3%) construction methods. This represented the highest market share during the 1992–2025 period.

Two notable regional concentration exists in the Northeast and the Midwest. These two regions recorded the highest market shares of homes built using non-site-built methods. In the Northeast, 8% (5,000 homes) of the region’s 61,000 completed single-family homes were built using non-site-built methods. In the Midwest, 5% (6,000 homes) of the region’s 124,000 completed single-family homes were built using these methods. However, in absolute terms, the South continues to be the largest market for this type of construction, with 16,000 homes built using non-site-built methods.

With respect to multifamily construction, approximately 3% of multifamily buildings (structures rather than individual units) were built using modular and panelized methods. This was significantly lower than the 7% share recorded in 2023 but was in line with the average over the last five years. Panelized construction methods accounted for the larger share (2%) of non-site-built multifamily construction. Prior to 2024, the highest combined share of modular and panelized construction in multifamily buildings occurred in 2000 and 2011, when 5% of multifamily buildings were constructed using modular (1%) or panelized (4%) methods.



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Nearly One in Three Construction Workers are Hispanic – Eye On Housing

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Diversifying the construction labor force remains a key priority amid persistent skilled labor shortages. According to NAHB analysis of the 2024 American Community Survey, non-Hispanic White workers account for the majority of the construction industry at 55.8%. Hispanic workers now represent nearly one-third of the labor force at 32.8%, followed by non-Hispanic Black workers at 5% and non-Hispanic Asian workers at 1.8 %.

One of the most notable trends in the construction labor force has been the steady rise of Hispanic participation. Between 2010 and 2024, the number of Hispanic workers in construction increased from 2.5 million to nearly 4 million. Over the same period, their share of the labor force climbed from 23.6% to 32.8%, meaning that nearly one in three construction workers today is Hispanic.

Hispanic workers comprise a larger share in the construction industry than in the overall U.S. workforce. In 2024, Hispanics accounted for 32.8% of the construction labor force, compared with 19.9% across all industries. Non-Hispanic White workers made up 56.7% of the construction labor force, similar to their share across all industries at 55.8%. Black and Asian workers, by contrast, remain underrepresented in construction.

The share of Hispanic workers varies widely across states. In Vermont, only 3% of workers in construction are Hispanic. While in New Mexico, Texas, and California, more than half the construction labor force are Hispanic. Overall, Hispanic construction workers are generally most concentrated in the South and West where Hispanic populations are larger.  Three states alone, Texas with 812,000 workers, California with 780,000, and Florida with 426,000, employ 51% of the nation’s Hispanic construction labor force. New Mexico has the highest Hispanic share of its construction workforce, at 65.6%, followed by Texas at 61.3% and California at 59.7%.

Other racial and ethnic groups also show great variations across states. In the Northeast, the construction industry remains dominated by non-Hispanic White workers. In New Hampshire, Vermont, and Maine, they account for more than 90% of the labor force. Non-Hispanic Black workers make up only 5% of construction labor force nationwide, compared with nearly 12% across all industries, though their shares are much higher in Mississippi at 21.8%, Louisiana at 15.3%, and Maryland at 14.3%. Non-Hispanic Asian workers account for less than 2% of the construction labor force overall, though they are a significant presence in Hawaii, where they comprise 30% of construction labor force.



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Single-Family Starts Down as Affordability Challenges Persist – Eye On Housing

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Single-family housing starts declined in September as builders faced higher financing, building material costs, and ongoing labor shortages.

Overall housing starts decreased 5.2% in September to a seasonally adjusted annual rate of 1.22 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if September’s activity were sustained.

Within the total, single-family starts decreased 4.6% to an 859,000 seasonally adjusted annual rate, the lowest level in a year. However, single-family starts were up 2.6% compared to September 2025. On a year-to-date basis, single-family starts are down 4.0%, reflecting continued challenges facing home builders. Given recent volatility, the three-month moving average provides a clearer signal, falling to 878,000 units.

Multifamily starts, which include apartment buildings and condominiums, decreased 6.7% from August to September to an annualized 362,000 pace. The three-month moving average for multifamily construction has trended lower to 415,000 units, and activity is 24.9% lower compared to year-earlier levels.

Regionally, on a year-to-date basis, combined single-family and multifamily starts were 8.3% higher in the Northeast, 0.3% lower in the South, 2.0% lower in the Midwest, and 6.3% lower in the West. Single-family starts declined across all four regions, reflecting ongoing challenges amid elevated construction costs and persistent housing affordability pressures.

The total number of housing units under construction stood at 1.28 million in September, down 3.3% from a year earlier. Single-family homes under construction stood at 587,000 units, a 2.8% year-over-year decline. Multifamily units under construction slowed to 693,000 units, down from peaks above 1 million units in December 2023 and 3.6% lower than a year ago.

Single-family completions slowed to an annualized rate of about 840,000 units, down 11.0% from a year earlier. Multifamily completions for buildings with five or more units declined 20.4% year over year to a 339,000-unit pace. On a year-to-date basis, total completions across both sectors was down 12.5%.

Looking ahead, overall permits edged down 0.2% in September to an annualized rate of 1.4 million units. Single-family permits declined 4.0% to an 845,000-unit rate and are down 4.8% compared to September 2025. Multifamily permits increased 6.1% to an annualized 555,000 pace but are down 0.2% from a year earlier. Looking at regional permit data on a year-to-date basis, total permits were 10.6% higher in the Northeast, 2.2% higher in the Midwest, but 3.2% lower in the South. Permit activity in the West was unchanged. For single-family permits, the Midwest was the only region to post an increase, rising 1.2%, reflecting relative strength in that region’s residential construction market.



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Builder Sentiment Falls on Rising Rates – Eye On Housing

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Rising mortgage rates, energy and material costs, and worsening labor and lot conditions have pushed builder sentiment to a 14-year low.

Builder confidence in the market for newly built single-family homes fell three points to 29 in October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The reading was the lowest since June 2012.

Housing remains squeezed by supply-side constraints and significant affordability challenges. Mortgage rates have climbed well above 7% in recent weeks. Though builders are also contending with higher costs for construction loans, building materials and diesel, the administration’s efforts to advance regulatory reform are helping to ease some of the cost pressures they face.

Demand persists, but higher mortgage rates, elevated construction costs and weaker consumer confidence are keeping more buyers on the sidelines. As a result, buyer traffic has fallen to its lowest level since April 2012, excluding the pandemic’s onset in April 2020.

Nationwide, more than one-third of builders reported immigration enforcement activity in their market areas during the past month, causing construction delays and discouraging legal workers from reporting to work.

The latest HMI survey found that 43% of builders cut prices in October, the highest share during the 2020-2026 period. The average price cut remained at 6% for the seventh consecutive month. Meanwhile, 65% of builders reported using sales incentives in October, the 19th straight month at least 60% of builders have done so.

Derived from a monthly survey that NAHB has been conducting for more than 40 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three of the major HMI indices posted losses in October. The index measuring current sales conditions fell two points to 33, the index gauging future sales expectations dropped five points to 32 and the index charting prospective buyer traffic fell five points to 18.

Looking at the three-month moving averages for regional HMI scores, the Northeast dropped one point to 38, the Midwest fell three points to 40, the South fell one point to 30 and the West posted a two-point decline to 26. The Midwest is a relatively bright spot for single-family home building, with permits up 2.9%

The HMI tables can be found at nahb.org/hmi.



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Single-Family Permitting Declines Through August – Eye On Housing

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Single-family permitting activity continued to soften through the first eight months of 2026, while multifamily permitting remained stronger compared with the same period last year. Regional and state-level trends show continued variation in permitting activity, reflecting differences in housing demand, affordability conditions, and local market dynamics.

Over the first eight months of the year, the number of single-family permits issued nationwide reached 620,558. Compared with the same period in 2025, this represents a 2.6% decline from the August 2025 total of 637,096. In contrast, multifamily permitting activity remained stronger, with 347,629 permits issued nationwide, marking a 5.1% increase compared with the same period last year.

Regionally, year-to-date single-family permitting declined in three out of the four regions through August. The Midwest was the only region to post an increase, with single-family permits rising 2.0%. The South declined 2.0%, the West fell 5.2%, and the Northeast posted the largest decline, at 9.4%. Multifamily permits increased in three of the four regions, led by the Northeast (31.0%), followed by the West (14.3%), and the Midwest (2.7%). The South was the only region to post a decline, with multifamily permits falling 5.6%, driven largely by reduced permitting activity in major metropolitan areas across the region.

At the state level, 23 states and the District of Columbia recorded increases in single-family permits compared with the same period last year, with gains ranging from 65.6% in the District of Columbia to 0.2% in Oklahoma. The remaining 27 states posted declines. Nevada recorded the steepest decline, with single-family permits falling 26.3%.

The ten states issued the highest number of single-family permits accounted for 62.4% of all single-family permits issued nationwide. Texas led the nation with 98,378 permits issued through August 2026, although this represented a 3.4% decline from the same period in 2025. Florida, the second-highest state, recorded a 1.3% decline, while North Carolina, ranking third, posted a 7.5% decrease.

Through August, 26 states and the District of Columbia recorded increases in multifamily building permits, while 24 states experienced declines. Alabama posted the largest percentage increase, with multifamily permits rising 76.3%, from 1,227 to 2,163 units. In contrast, Louisiana recorded the steepest decline, with permits falling 65.5%, from 2,400 to 829 units.

The ten states issued the highest number of multifamily permits accounted for 60.9% of all multifamily permits issued nationwide. Through the first eight months of 2026, Texas, which issued the largest number of multifamily permits, posted a 17.2% decline compared with the same period last year. California, the second-highest state, recorded a 25.5% increase, while Florida, ranking third, saw multifamily permits decrease by 28.1%.

At the local level, the following are the ten metropolitan areas with the highest number of single-family permits issued.

Below are the ten metropolitan areas with the highest levels of multifamily permitting activity.



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Research Highlights the Broad Benefits of Homeownership – Eye On Housing

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A rich, peer-reviewed academic literature finds that homeownership produces benefits that extend well beyond house-price appreciation. As detailed in a 2003 Journal of Urban Economics literature review, research across economics, political science, sociology, medical research, and related fields identifies homeownership as both a wealth-building mechanism and a source of broader household and community stability. Homeownership encourages saving through down payment accumulation and mortgage amortization, creates housing equity that can support retirement or buffer financial shocks, and protects households from rising rents. The literature also links homeownership with stronger employment outcomes, improved physical and mental health, greater family stability, and better educational outcomes for children.

The benefits of homeownership also extend beyond individual households. Because homeowners have a financial stake in their properties and tend to have longer-term ties to their neighborhoods, homeownership is associated with greater property maintenance, higher participation in civic and volunteer organizations, and lower exposure to crime. The literature further finds that neighborhood homeownership rates can generate spillover benefits, strengthening local organizations and supporting surrounding property values. Taken together, this research suggests that policies promoting sustainable homeownership can improve both household opportunity and community well-being.

Housing is unique among major household purchases because it combines the consumption of shelter with ownership of a long-lived asset. Moreover, homeownership matters for most American households. Prior NAHB research using the National Longitudinal Study of Youth estimated a lifetime homeownership rate (the share of adults who have a period of homeownership during their lifetime) of 90.5% for households observed from 1980 through 2016. Among households that became homeowners after 1992, 88% remained owners eight years later.

Research identifying the benefits of homeownership continues. Recent peer-reviewed studies have highlighted the impact of homeownership on wealth, child outcomes, seniors’ status, and community participation.

Homeownership and wealth

Recent academic work continues to identify homeownership as a primary mechanism for middle-class wealth accumulation. For example, Goodman and Mayer (2018) found favorable returns to ownership across multiple locations, even after accounting for the Great Recession. Ownership also provides a form of housing-cost protection: a mortgage-free home in retirement hedges against increases in the cost of housing services. Home equity can further serve as a financial buffer, particularly later in life.

The 2025 Survey of Consumer Finances confirms the basic thesis. The wealth of the median homeowner in 2025 was $458,900, up from $433,600 in 2022. The wealth of the median renter in 2025 was $10,600, down from $11,400 in 2022. The magnitude of the difference, a factor or more than 43, is striking and reflects both impacts and opportunities with respect to homeownership.

Homeownership benefits for children

A substantial literature links parental homeownership with stronger educational and economic outcomes for children. Cooper and Luengo-Prado (2015) found that a 1% increase in home prices when a child was age 17 was associated with 0.9% higher annual income for the children of homeowners. Research also reports higher rates of post-secondary enrollment and attendance. Other work suggests that residential stability, household resources, and neighborhood conditions are important channels, and that results should be interpreted carefully because family characteristics also influence both tenure choice and child outcomes.

Housing equity and retirement security

Studies generally associate homeownership with lower stress and better social, mental, and physical health. Loibl et al. (2021) found that each $10,000 of borrowing capacity against home equity was associated with a 2.2 percentage-point reduction in food insecurity among older adults. Rahman (2026) reported lower odds of several chronic conditions among homeowners, along with improved access to care and greater use of preventive services, after accounting for socioeconomic characteristics. These findings point to housing stability and equity as potential resources during periods of financial or health stress.

Community participation is one of the most consistent social findings

Homeowners tend to participate more in civic and social organizations than renters, generating potential benefits for the communities in which they live. Reviews by Dietz and Haurin (2003) and Haurin (2012) identify higher participation in voting, volunteer organizations, and neighborhood activities. The strongest and most consistent effect is voting. McCabe (2013) emphasized that residential stability is an important mechanism: long-term renters exhibit similar patterns of engagement, indicating that stability, rather than ownership alone, explains part of the relationship.

Labor-market evidence does not support a simple mobility impact

Earlier research raised concerns that homeownership could increase unemployment by making workers less geographically mobile. More recent microeconomic evidence is less supportive of that claim. Green and Wang (2015) found no statistically significant adverse effect of tenure status on employment growth, unemployment risk, or jobless duration. Their results instead associated homeownership with higher wage growth, longer employment duration, and a greater likelihood of interstate moves. Reuschke (2016) also found that mortgage-free ownership was associated with home-based self-employment, suggesting a potential role for housing in small-business formation.

Conclusion

The expanding research literature supports a broad view of homeownership. The value of homeownership is not limited to house-price appreciation. Ownership can combine forced saving, equity accumulation, residential stability, and a durable stake in a neighborhood. These channels are associated with improved outcomes for households and communities. At the same time, many studies identify correlations more readily than causal effects, with affordability, mortgage sustainability, housing quality, and neighborhood conditions helping to determine the benefits of homeownership. Policies that expand sustainable access to homeownership, increase housing supply, and preserve responsible financing can therefore support both household opportunity and community well-being.

Selected research

• Cooper, D. and Luengo-Prado, M.J. (2015), Journal of Urban Economics 86: 54–72.

• Dietz, R.D. and Haurin, D.R. (2003), Journal of Urban Economics 54: 401–450.

• Goodman, L. and Mayer, C. (2018), Journal of Economic Perspectives 32(1): 31–58.

• Green, R. and Wang, B. (2015), USC Lusk Center Working Paper 9474.

• Haurin, D. R. (2012), International Encyclopedia of Housing and Home: 411–416.

• Loibl, C. et al. (2021), Applied Economic Perspectives and Policy 44(2): 549–574.

• Rahman, S. (2026), American Journal of Public Health 116(1): 137–147.

• Reuschke, D. (2016), Economic Geography 92(4): 378-400.

This post was co-authored by Alexander Gandhi and Reid Gandhi during the Spring of 2026.

This post draws upon a comprehensive, academic literature review “The Impacts of Homeownership: A Review of the Literature During the Housing Deficit Era,” which is now forthcoming with Alexander Gandhi and Reid Gandhi in an updated edition of the Encyclopedia of Housing and Home.



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