The accession rate to American property has been falling for the first time since 2016 in the midst of economic and demographic changes, known as Redfin

Redfin says it frankly: the population of American owners has stopped growing. Chen Zhao, head of research in Redfin economics, attributes this to “the increase in prices of houses, high mortgage rates and economic uncertainty (which) made more and more difficult the possession of a house”. Zhao has also noted secular changes in the economy that can play a role. “People also get married and create families later, which means that they buy houses later – another factor that can be at stake.”

At first glance, a drop of 0.1% may seem small, but it stops at a regular rise and suggests deeper challenges with the market. The median home sales price increased by 1.4% from one year to the next in July to $ 443,867, the highest figure in July ever recorded. Meanwhile, mortgage rates are now at 6.56%, more than double of the stockings recorded during the pandemic – once when the purchase of the house seemed to be accessible for many. Redfin notes that it costs millions of Americans, possibilities for creating key wealth, because choosing to continue renting rather than buying a house means that they give up equity.

Ritholtz Wealth Management Coo Nick Maggiulli spoke Fortune At the beginning of August about his new book, The scale of wealth, But also what he calls the “broken housing market”. His research shows that America has never had as many millionaire tenants before, and although he did not disclose his personal income, he said that he was one of the successful Americans deciding that rental is the right approach. “What it means for me personally is that I’m just going to rent for much longer,” said Maggiulli,, “Because it doesn’t make sense to buy, especially where the prices are, prices, everything.” The current state of the housing market “does not add up” for its situation.

Tenants increase while buyers hesitate

While the owners are online, the tenant population increases. A 2.6% increase in tenants of households brings the total to 46.4 million, that of the largest jumps observed in years. Admittedly, Redfin reports that these are minor changes but notable in a broaderly static image, because the ownership rate has remained relatively stable – 65% in the second quarter, against 65.6% a year earlier, while the rental rate was 35%, up 34.4% a year earlier.

The Redfin report also highlights clear geographic disparities. In several major metropolitan regions, home ownership is far behind the national rate. Los Angeles has an ownership access rate of only 46.4%, tenants with more than half of the market (53.6%), and New York is similar, at 49.4%and 50.6%, respectively. San Diego, Las Vegas, San Francisco and San Jose have rates of accession to a little more than 50%, but are also dominated by tenants, exposing how affordable problems in urban centers lean the balance of property.

On the other hand, some regions reversed the trend. North Port, in Florida, has the highest home ownership rate among large metros at 79.5% (rental of 20.5%), while Baton Rouge and Charleston, SC, 75% of TOP 75% in the property. Like a large part of the sun belt, these areas continue to attract buyers, often pulled by lower prices and an offer of robust housing.

Although mortgage rates have started to drop in recent weeks, released slightly compared to the top of more than 7% earlier this year, affordability remains a central concern. The rise in prices, high rates and economic uncertainty are combined to maintain many budding owners on the sidelines, while those looking for houses face intense competition and a tight offer.

This is part of a broader economic image where President Donald Trump attempts a daring restructuring of the American economy with considerably higher prices on many longtime business partners, resulting in uncertainty for business and an increasingly frozen jobs, especially since the legality of the prices seems to be directed towards the Supreme Court. The prices also seek to have increased sticky inflation, Trump putting pressure on the president of the federal reserve Jerome Powell to reduce rates, largely to move the housing market. During all this time, a large part of the stock market growth is motivated by technological shares and AI, in particular a massive national investment in data centers, with many investors starting to see signs of a bubble which could end up excluding before any other drop in shoes.

For this story, Fortune Used a generative AI to help an initial project. An editor checked the accuracy of the information before the publication.

Global Forum fortune returns on October 26 to 27, 2025 in Riyadh. CEOs and world leaders will meet for a dynamic event only invitation that shapes the future of business. Request an invitation.