The Future of Household Formation and Homeownership in Colorado

Forecasting State Homeownership Trends

 

Trends in household formation and homeownership have important implications for states’ housing markets and broader economies. They also reveal who has benefited from homeownership and who has been shut out of this critical wealth-building tool. To better understand the past and future of household formation and homeownership in Colorado, we look at trends by age, race, and ethnicity. Our projections, using data from decennial censuses and the American Community Survey, show what will happen over the next two decades if current policies stay the same. For more details on the methodology, see our report.

Household Formation

We look at changes in the number of households (defined as one or more people who live in a housing unit) for four racial and ethnic groups: Hispanic, non-Hispanic white, non-Hispanic Black, and people of other races, which includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial people (all of whom are non-Hispanic). We also examine household formation trends for people younger than 65 and people ages 65 and older.

Number of Households and Household Growth

Number of Households in Colorado, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 1,278,006 1,657,992 1,972,810 2,260,849 2,609,267 2,918,424
White 1,080,855 1,330,035 1,520,030 1,674,555 1,859,164 2,001,290
Black 47,199 58,166 72,630 87,023 102,871 119,680
Hispanic 126,393 205,156 294,610 376,775 482,043 587,458
Other 23,559 64,635 85,540 122,496 165,189 209,996
  Household Growth: Colorado Household Growth: Nationwide
2010–2020 2020–2030 2030–2040 2010–2020 2020–2030 2030–2040
Total 14.6% 15.4% 11.8% 5.9% 6.4% 5.4%
White 10.2% 11.0% 7.6% 0.1% 0.5% −1.3%
Black 19.8% 18.2% 16.3% 9.9% 10.1% 8.8%
Hispanic 27.9% 27.9% 21.9% 22.1% 19.2% 17.3%
Other 43.2% 34.9% 27.1% 20.9% 20.0% 18.4%

Sources: Decennial censuses, the American Community Survey, and Urban Institute projections.
Notes: Values for 2020, 2030, and 2040 are projected values. The “Other” category includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial people.

Number of Households in Colorado, by Age


 

Number of Households in Colorado, by Age, Race, and Ethnicity
 
  Younger than 65 65 and older
White Black Hispanic Other White Black Hispanic Other
1990 884,859 42,714 112,182 21,129 195,996 4,485 14,211 2,430
2000 1,089,830 51,064 183,437 59,025 240,205 7,102 21,719 5,610
2010 1,214,410 62,630 262,480 76,610 305,620 10,000 32,130 8,930
2020 1,215,177 70,882 323,789 105,949 459,378 16,141 52,986 16,546
2030 1,252,039 79,787 400,140 137,857 607,125 23,084 81,903 27,332
2040 1,347,317 91,435 468,473 170,739 653,973 28,244 118,985 39,257
Number of Households in the United States, by Age, Race, and Ethnicity
 
  Younger than 65 65 and older
White Black Hispanic Other White Black Hispanic Other
2000 60,344,232 9,972,344 8,293,773 4,728,999 18,748,904 1,835,658 928,629 627,564
2020 55,784,880 11,872,258 14,733,722 7,456,779 26,591,297 3,379,648 2,550,232 1,616,708
2040 48,524,107 13,051,680 19,825,205 10,817,807 33,236,589 5,553,598 6,026,735 3,088,951

Sources: Decennial censuses, the American Community Survey, and Urban Institute projections.
Notes: Values for 2020 and 2040 are projected values. The “Other” category includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial people.

Household Racial and Ethnic Composition, by Age, in Colorado, and Nationwide

Sources: Decennial censuses, the American Community Survey, and Urban Institute projections.
Notes: Values for 2020, 2030, and 2040 are projected values. The “Other” category includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial people.

Homeownership

We look at changes in homeownership for four racial and ethnic groups: Hispanic, non-Hispanic white, non-Hispanic Black, and people of other races, which includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial people (all of whom are non-Hispanic). We also examine trends in the number of homeowners and renters younger than 65 and people 65 and older.

Colorado Homeownership Rates, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 62.3% 67.3% 65.5% 66.5% 66.3% 65.9%
White 65.1% 71.2% 70.4% 71.8% 71.8% 71.3%
Black 37.2% 46.3% 41.2% 37.2% 36.0% 35.7%
Hispanic 51.1% 52.8% 49.6% 52.9% 55.0% 57.5%
Other 47.6% 52.9% 54.9% 57.8% 56.8% 55.2%
National Homeownership Rates, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 65.3% 66.2% 65.1% 64.7% 63.6% 62.2%
White 70.1% 72.4% 72.2% 73.0% 72.5% 71.4%
Black 45.2% 46.3% 44.3% 41.9% 41.1% 40.6%
Hispanic 43.3% 45.7% 47.3% 49.0% 50.2% 51.3%
Other 53.7% 53.0% 56.3% 58.1% 57.9% 57.4%

Sources: Decennial censuses, the American Community Survey, and Urban Institute projections.
Notes: Values for 2020, 2030, and 2040 are projected values. The “Other” category includes Asians, American Indians, Alaska Natives, Native Hawaiians, other Pacific Islanders, and multiracial people.

Homeowners and Renters, by Age, in Colorado and Nationwide

Colorado Homeownership Rates, by Age
 
  1990 2000 2010 2020 2030 2040
Younger than 65 59.7% 65.1% 62.7% 61.8% 60.6% 60.7%
65 and older 75.4% 78.4% 78.6% 81.6% 80.7% 78.7%
National Homeownership Rates, by Age
 
  1990 2000 2010 2020 2030 2040
Younger than 65 62.3% 63.0% 61.6% 59.5% 57.5% 56.5%
65 and older 75.8% 78.1% 77.5% 78.4% 76.0% 73.0%

Sources: Decennial censuses, the American Community Survey, and Urban Institute projections.
Note: Values for 2020, 2030, and 2040 are projected values.

Millions of Owners and Renters in Colorado and Nationwide, by Age

Sources: Decennial censuses, the American Community Survey, and Urban Institute projections.
Note: Values for 2020, 2030, and 2040 are projected values.