Why is Congress debating how to improve the odds that a house hunter can buy their own home?<\/p>\n
It\u2019s because 40 years after a major tax reform push attempted to make homeownership more attractive, the share of folks living in the home they owned last year was below par in both California and nationwide.<\/p>\n
The 21st Century ROAD to Housing Act has passed the Senate<\/a> with bipartisan support and awaits House action. Simply put, the bill would limit how much certain large investors can be involved in the ownership of single-family homes<\/a>.<\/p>\n The legislation parallels growing frustration across the nation about the numerous challenges house hunters face \u2014 most notably, steep affordability hurdles. And the ROAD Act could mean wannabe owners face less competition when seeking a home<\/a>.<\/p>\n My trusty spreadsheet\u2019s review<\/a> of\u00a0homeownership statistics from the U.S. Census Bureau<\/a> finds that despite numerous government efforts to boost the number of owners over many decades, there\u2019s been minimal \u2014 if any \u2014 progress.<\/p>\n Back in 1986, for example, Congress nudged ownership by cutting tax breaks for landlords, while mortgage interest remained the only major consumer borrowing that was tax-deductible.<\/p>\n Vintage 2025<\/p>\n California\u2019s 2025 homeownership rate was 55.3% \u2014 the third-lowest among the states and 9.9 percentage points below the national rate of 65.2%.<\/p>\n By the way, 2025\u2019s gap equals the average difference between California and the U.S. ownership over the past 40 years.<\/p>\n Only the District of Columbia (40.3%) and New York (52.2%) had lower rates. Highest ownership? West Virginia at 78.1%, Delaware at 75.5% and Vermont at 75.3%.<\/p>\n One-year slip<\/p>\n At least California\u2019s rate was flat last year vs. 2024.<\/p>\n U.S. ownership was off by 0.4 percentage points in 2025, with 25 states experiencing declines, led by Idaho, down 3.3 percentage points, Oklahoma, down 3, and Colorado, down 2.8.<\/p>\n Biggest gains?\u00a0Rhode Island, up 3 percentage points, Kentucky, up 2.9 and Arkansas, up 2.3.<\/p>\n 4-decade rank<\/p>\n Ponder 2025\u2019s ownership in a 40-year periscope.<\/p>\n California\u2019s 55.3% ownership rate last year ranked only the state\u2019s 20th-best level since 1986\u2014basically, a mid-range score.<\/p>\n Last year\u2019s U.S. rate was the nation\u2019s 23rd best over 40 years.<\/p>\n Yes, Vermont had a record-high ownership rate in 2025, at 75.3%. Hawaii, at 60.9%, and Rhode Island, at 65.1%, both had their second-best years.<\/p>\n But Oklahoma, at 63.8%, and Idaho, at 68.3%, had their worst ownership rate over four decades. North Carolina\u2019s 64.5% was its second-worst, and Utah\u2019s 68.3% was its third-worst.<\/p>\n Oh, there\u2019s Texas, with a 2025 rate that was its 15th-best. And Florida? No. 26.<\/p>\n If ownership is a national economic priority, that\u2019s not much progress.<\/p>\n Can\u2019t beat average<\/p>\n Now contemplate the 40-year average ownership.<\/p>\n In California, it\u2019s 55.8% \u2014 third worst among the states. Nationally, it\u2019s 65.7% nationally.<\/p>\n Again, just the District of Columbia (41.1%) and New York (53.2%) were worse. Highest? West Virginia was at 76.1%, and Michigan and Maine were at 74%.<\/p>\n Sadly, last year\u2019s ownership rates could not meet this standard in roughly half the states. California\u2019s 2025 rate was half a percentage point below par. By the way, that\u2019s the same ownership deficit as the nation.<\/p>\n There were 27 other states also below average, led by Oklahoma, 5.7 percentage points below; North Carolina, 4 percentage points below; and Idaho and Utah, 3.3 percentage points below.<\/p>\n Conversely, Hawaii\u2019s rate was 4.4 percentage points above average. Rhode Island was up 4 points. And Vermont was 3.6 higher.<\/p>\n If homeownership is the American Dream, expanding that goal has been a nightmare.<\/p>\n