The Future of Household Formation and Homeownership in Connecticut

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 Connecticut, 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 Connecticut, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 1,227,080 1,301,832 1,371,000 1,386,692 1,370,215 1,309,380
White 1,066,040 1,061,840 1,052,370 984,853 892,336 757,155
Black 87,441 101,845 119,890 128,287 137,265 144,120
Hispanic 58,608 89,968 136,760 198,944 252,368 306,246
Other 14,991 48,179 61,980 74,608 88,247 101,859
  Household Growth: Connecticut Household Growth: Nationwide
2010–2020 2020–2030 2030–2040 2010–2020 2020–2030 2030–2040
Total 1.1% −1.2% −4.4% 5.9% 6.4% 5.4%
White −6.4% −9.4% −15.1% 0.1% 0.5% −1.3%
Black 7.0% 7.0% 5.0% 9.9% 10.1% 8.8%
Hispanic 45.5% 26.9% 21.3% 22.1% 19.2% 17.3%
Other 20.4% 18.3% 15.4% 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 Connecticut, by Age


 

Number of Households in Connecticut, by Age, Race, and Ethnicity
 
  Younger than 65 65 and older
White Black Hispanic Other White Black Hispanic Other
1990 804,456 75,503 54,449 14,069 261,584 11,938 4,159 922
2000 789,552 87,846 83,730 43,938 272,288 13,999 6,238 4,241
2010 770,680 100,640 123,810 56,200 281,690 19,250 12,950 5,780
2020 643,707 101,426 175,995 64,483 341,146 26,861 22,949 10,125
2030 494,296 99,479 210,511 72,882 398,039 37,786 41,856 15,365
2040 392,218 99,265 239,875 80,840 364,938 44,855 66,371 21,020
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 Connecticut, 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.

Connecticut Homeownership Rates, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 65.6% 66.9% 67.5% 66.2% 65.5% 64.3%
White 70.9% 73.9% 75.8% 77.0% 77.3% 77.3%
Black 32.1% 37.0% 40.6% 39.0% 45.2% 51.9%
Hispanic 24.4% 27.9% 33.3% 33.7% 35.7% 37.3%
Other 48.2% 47.0% 53.5% 58.4% 62.5% 66.6%
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 Connecticut and Nationwide

Connecticut Homeownership Rates, by Age
 
  1990 2000 2010 2020 2030 2040
Younger than 65 63.9% 64.6% 65.3% 62.0% 60.5% 60.2%
65 and older 71.5% 74.4% 74.8% 76.7% 74.2% 71.0%
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 Connecticut 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.