Hidden Truth: Why Homeownership Rate Continues Rising
Timothy Alston | Broker
Aegis Luxury Real Estate · DRE# 01328224
Published
July 29, 2020
Timeless suburban elegance
The national homeownership rate continues to climb, and the numbers behind that trend are worth understanding. According to the U.S. Census Bureau, the homeownership rate reached 67.9 percent, up 3.8 percentage points vs. last year. Younger buyers are driving much of that growth, motivated by historically low mortgage rates and a desire for more space than rental living provides.
You know how it feels when you keep waiting for the “right time” to buy a home, and somehow the right time never quite arrives? And meanwhile, rent goes up again, your space stays the same, and another year passes? A lot of people considering homes in Los Altos are sitting in exactly that spot right now.
But here is the part most people have not stopped to think about yet: while they are waiting, something is quietly happening around them. More people are becoming homeowners. Younger buyers, first-time buyers, people who were also waiting, are making moves. What does that shift mean for someone in your situation?
What Does Your Housing Situation Actually Look Like Right Now?
Take a moment and think honestly about where you are. Are you renting? Have you been renting for a while? When did you last stop and ask yourself what that is actually costing you, not just in monthly payments, but in the equity you are not building, the stability you do not have, the space you have been tolerating instead of choosing?
How long have you been thinking about buying a home without it moving from a thought to a plan?
That is not a judgment. That is just a question worth sitting with, because the answer tells you something important about where you actually are versus where you thought you would be by now.
The Homeownership Rate Continues to Shift, and Here Is Why It Matters
The U.S. Census Bureau data shows the homeownership rate continues to rise in ways that even surprised economists. Odeta Kushi, Deputy Chief Economist at First American, described the increase as a big jump, mostly driven by younger households, noting a spike in the number of owners and a decline in the number of renters. She called it the highest homeownership rate since 2008.
What is driving that? A big part of it is mortgage rates sitting near historic lows, which directly affects affordability. Ralph McLaughlin, Chief Economist for Haus, described low mortgage rates as the icing on the cake for households that were already considering buying. He noted that buyers found an unexpected opportunity even during serious economic headwinds.
Can you see how that works? Lower rates mean lower monthly payments, which means the gap between what you are paying in rent and what you could be paying on a mortgage narrows, sometimes significantly.
In the Los Altos homes for sale market, where property values have historically been strong and buyer demand remains consistent, that affordability window is worth paying attention to. Los Altos real estate tends to hold its value well over time, which means the equity conversation is not hypothetical here.
Have You Ever Stopped to Think About What Renting Is Actually Costing You?
Here is a question that a lot of renters do not ask themselves often enough: at the end of twelve months of rent payments, what do you have to show for it?
Not a criticism. Just a math question.
Now flip it. If you had purchased a home and made twelve months of mortgage payments instead, you would have been building equity with every single payment. Your loan balance would be lower. The home would likely have appreciated. You would own a piece of something that has real long-term value.
What would it mean for your family if, ten years from now, you had built a significant amount of equity, simply from the place you were already living in? The National Association of Realtors has documented a substantial gap between average homeowner net worth and average renter net worth. That gap does not appear by accident. It is the result of compounding equity over time.
How would that change things for you?
What Happens If Nothing Changes?
This is the consequence question most people avoid asking. If you keep doing exactly what you are doing for the next three to five years, where does that leave you? Rent tends to increase. Inventory in markets like Los Altos does not always expand. The buyers who act when mortgage rates are favorable lock in a monthly payment that does not change the way rent does.
What does it actually cost you to wait another year? Not emotionally. Financially. In terms of equity not built, appreciation not captured, and a rate environment that may not stay where it is.
If you could lock in a stable monthly payment right now and start building equity in a Los Altos home instead of building your landlord’s balance sheet, what would that be worth to you?
What the Data Suggests for Someone in Your Situation
Based on what the Census Bureau data shows, and what economists like McLaughlin and Kushi are observing, the homeownership rate continues to grow because buyers are recognizing an unusual alignment: motivated desire for more space, historically favorable mortgage rates, and a housing market that has proven resilient even under economic pressure.
That does not mean buying a home is right for everyone right now. It depends on your financial picture, your timeline, and what you actually want your life to look like.
But it might mean the conversation is worth having.
Does that make sense for where you are right now?
If it does, the next step is simple: a straightforward conversation with Timothy Alston, licensed Broker (DRE# 01328224), to look at your actual numbers and see whether the path to homeownership is closer than you think. Not a pitch. Not a sales call. Just an honest look at your situation. You can reach Timothy directly at (408) 207-4593. The decision is entirely yours. But at least you will know what the decision actually involves.
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Serving districts: Los Altos SD (K-8), Mountain View-Los Altos Union High SD (9-12). School district boundaries can change; please verify current enrollment boundaries and program offerings directly with the school district.
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Broker · DRE# 01328224
Aegis Luxury Real Estate
Harvard Business School Online, Certified Master Negotiation
23+ Years Silicon Valley Real Estate Experience
Retired Military Veteran
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The data relating to real estate for sale on this display comes in part from the Internet Data Exchange program of the MLSListings™ MLS system. Real estate listings held by brokerage firms other than Aegis Luxury Real Estate are marked with the Internet Data Exchange icon and detailed information about them includes the names of the listing brokers and listing agents.
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Aegis Luxury Real Estate · Timothy Alston, Broker, DRE# 01328224 · 10080 N. Wolfe Rd Ste SW3-200, Cupertino CA 95014 · (408) 207-4593
Last updated: June 29, 2026 | Data reflects June 2026 MLS statistics
