The Future of Household Formation and Homeownership in Indiana

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 Indiana, 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 Indiana, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 2,064,244 2,336,516 2,502,130 2,654,435 2,818,134 2,921,472
White 1,874,295 2,053,569 2,123,440 2,166,955 2,201,190 2,165,586
Black 147,571 183,491 218,160 252,279 295,895 338,416
Hispanic 26,522 54,814 99,160 142,048 187,274 236,825
Other 15,856 44,642 61,370 93,154 133,776 180,645
  Household Growth: Indiana Household Growth: Nationwide
2010–2020 2020–2030 2030–2040 2010–2020 2020–2030 2030–2040
Total 6.1% 6.2% 3.7% 5.9% 6.4% 5.4%
White 2.0% 1.6% −1.6% 0.1% 0.5% −1.3%
Black 15.6% 17.3% 14.4% 9.9% 10.1% 8.8%
Hispanic 43.3% 31.8% 26.5% 22.1% 19.2% 17.3%
Other 51.8% 43.6% 35.0% 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 Indiana, by Age


 

Number of Households in Indiana, by Age, Race, and Ethnicity
 
  Younger than 65 65 and older
White Black Hispanic Other White Black Hispanic Other
1990 1,444,387 120,920 24,021 14,564 429,908 26,651 2,501 1,292
2000 1,594,243 152,199 50,454 40,539 459,326 31,292 4,360 4,103
2010 1,624,080 183,640 91,960 55,410 499,360 34,520 7,200 5,960
2020 1,525,968 200,865 127,295 81,405 640,987 51,413 14,753 11,750
2030 1,406,747 227,775 159,814 114,868 794,442 68,120 27,460 18,908
2040 1,350,899 261,454 195,858 154,309 814,687 76,962 40,967 26,337
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 Indiana, 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.

Indiana Homeownership Rates, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 70.2% 71.4% 69.9% 69.6% 69.0% 68.0%
White 72.5% 74.8% 74.2% 75.1% 75.2% 74.8%
Black 46.2% 45.3% 40.6% 35.8% 35.6% 36.1%
Hispanic 55.1% 48.5% 52.2% 56.3% 58.1% 58.8%
Other 48.5% 49.8% 51.1% 52.7% 55.6% 58.5%
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 Indiana and Nationwide

Indiana Homeownership Rates, by Age
 
  1990 2000 2010 2020 2030 2040
Younger than 65 67.9% 69.3% 66.9% 65.5% 64.7% 64.3%
65 and older 78.3% 79.2% 80.5% 80.6% 78.0% 75.7%
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 Indiana 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.