What does this indicator measure?
This indicator measures the the overall homeownership rate as well as specific homeownership rates for racial/ethnic groups. The data is provided for the city of Dallas, Dallas County, Collin County, Denton County, Tarrant County, Texas, and the United States. The homeownership rate is calculated by dividing the number of owner-occupied housing units by the number of total occupied housing units. In other words, the homeownership rate measures the percentage of households that own their home (including homeowners with and without a mortgage), as opposed to those households that rent their home.
The baseline data come from the decennial census, while annual updates are provides by Claritas Estimates. For each geographic area, the homeownership rate is also calculated separately for each racial/ethnic group. For example, the Black/African American homeownership rate would be those Black/African American households that own the home, taken as a percentage of all Black/African American households. When a household contains individuals of different races or ethnicities, the racial/ethnic category of the person designated as the primary householder for census purposes is used.
Why is this indicator important?
Homeownership is the quintessential achievement of the American dream. With or without the picket fence, owning a home is an accomplishment to which almost everyone aspires. Homeownership allows a household to build home equity by paying down a mortgage. The wealth produced through the accumulation of home equity will be most households’ primary and largest asset. That wealth can be harnessed in a number of ways. Home equity built up over a lifetime can provide a debt- and rent-free home for a retired couple, thus significantly reducing the financial strain of retirement. Home equity can be used as collateral to borrow funds to start a business or help children with college expenses. Moreover, a home that is paid in full can provide a significant inheritance for one’s children, allowing for the intergenerational accumulation and transfer of wealth. In short, homeownership is a key to social mobility.
Unfortunately, for many low-income households, homeownership remains an ever elusive dream rather than a reality. Many low-income households are unable to procure the down payment necessary to secure a mortgage and buy a home. These households may pay rent every month throughout their lives, and yet have no wealth accumulated at the end. Although renting is appropriate for many people, particularly those who move frequently, more households would benefit from owning a home. By tracking homeownership rates, we are better informed to develop initiatives to help more people achieve the dream of homeownership.
How are we doing?
Homeownership rates in the city of Dallas in 2007 were about 25 percentage points lower than those of the nation as a whole, and about 23 percentage points lower than Texas as a whole. Correspondingly, homeownership rates for each racial/ethnic category are lower in the city of Dallas and in Dallas County than they are in other area geographies and nationwide. However, the gap in homeownership rates between households of different racial/ethnic backgrounds in the city of Dallas is slightly smaller than it is elsewhere, with the gap between the Black homeownership rate and the White homeownership rate less than 17 percentage points, compared to 19 percentage points nationwide.
Since the year 2000, little change has occurred in the overall homeownership rate in most area geographies. Most geographic areas and racial/ethnic groups have seen slight increases in the homeownership rate of no more than 3 percentage points. The city of Dallas is a minor exception, with the overall homeownership rate falling from 43.23% in 2000 to 42.12% in 2007. Homeownership rates for year 2007 are shown in the table below. Data for additional years is available by downloading the spreadsheet located at the bottom of this page.
Homeownership Rates in the Dallas Area, 2007 |
| Overall | White | Black | Hispanic | Asian | Other |
City of Dallas | 42.12% | 52.95% | 35.57% | 35.60% | 27.97% | 31.17% |
Dallas County | 52.65% | 64.67% | 43.20% | 41.85% | 43.87% | 44.76% |
Collin County | 71.14% | 75.92% | 54.02% | 52.38% | 70.35% | 61.90% |
Denton County | 65.86% | 71.25% | 44.48% | 49.22% | 60.86% | 57.38% |
Tarrant County | 61.91% | 69.50% | 46.54% | 49.74% | 56.41% | 51.79% |
Texas | 64.95% | 72.77% | 48.19% | 57.17% | 57.61% | 56.96% |
United States | 67.02% | 73.90% | 48.01% | 47.30% | 55.24% | 52.90% |
Source:
Claritas 2007
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