The California homeownership rate rose slightly at the end of 2025, reflecting slower price growth and more moderate interest rates nationwide. New data from the U.S. Census Bureau show the national homeownership rate reached 65.7 percent in the fourth quarter of 2025, up from 65.3 percent in the third quarter.
The figures come from the Census Bureau’s Housing Vacancy Survey, available at https://www.census.gov/housing/hvs/. The agency noted the latest data collection occurred during a federal government shutdown. Surveyors gathered only two months of data instead of three, which may affect overall accuracy.
Nationally, the California homeownership rate trend mirrors a modest quarterly gain but little year-over-year change.
National Homeownership Rate Remains Below Peak
Despite the recent uptick, the national rate remains below historic highs. The 65.7 percent rate in late 2025 trails the 69.2 percent peak recorded in 2004. It also sits below the 25-year average of 66.3 percent.
Compared with the fourth quarter of 2024, the national rate was flat. That suggests the market has stabilized after several years of steep price increases and elevated mortgage rates.
Among age groups, adults under 35 posted the strongest gains. Their homeownership rate rose 1.6 percentage points to 37.9 percent in the fourth quarter. Households ages 55 to 64 also saw a slight increase.
All other age groups experienced small declines during the same period.
California Homeownership Rate Shows Modest Shift
At the state level, the California homeownership rate climbed to 55.3 percent in the fourth quarter of 2025. That marks a small increase from 55 percent in the previous quarter. Still, it slipped from 55.5 percent recorded in the fourth quarter of 2024.
California continues to rank below the national average, reflecting high home prices and persistent affordability challenges. In communities across the San Gabriel Valley, including El Monte, Baldwin Park and Rosemead, limited housing supply has constrained ownership opportunities for first-time buyers.
Local real estate agents report that slightly lower mortgage rates in late 2025 encouraged some renters to enter the market. Slower price growth also reduced pressure on buyers who had paused searches earlier in the year.
Outlook For 2026 Remains Cautious
Housing analysts project that affordability could improve in 2026 if mortgage rates hold steady and home price growth remains moderate. That scenario could nudge the California homeownership rate higher in coming quarters.
Still, experts expect any gains to remain gradual. Wage growth, housing inventory and borrowing costs will shape the pace of change.
For San Gabriel Valley residents, even small shifts in rates and prices can influence buying decisions. The latest data suggest movement in a positive direction, though the broader market remains well below historic peaks.
As policymakers and local leaders weigh housing strategies, incremental changes in the California homeownership rate will remain a key indicator of economic access and stability for area families.
