The Future of Household Formation and Homeownership in Iowa

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 Iowa, 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 Iowa, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 1,062,028 1,148,458 1,221,550 1,286,333 1,352,461 1,404,194
White 1,029,972 1,089,530 1,127,920 1,142,095 1,147,034 1,128,219
Black 15,082 20,334 28,840 43,235 59,008 77,851
Hispanic 8,187 20,008 37,190 57,484 82,541 110,392
Other 8,787 18,586 27,600 43,519 63,878 87,731
  Household Growth: Iowa Household Growth: Nationwide
2010–2020 2020–2030 2030–2040 2010–2020 2020–2030 2030–2040
Total 5.3% 5.1% 3.8% 5.9% 6.4% 5.4%
White 1.3% 0.4% −1.6% 0.1% 0.5% −1.3%
Black 49.9% 36.5% 31.9% 9.9% 10.1% 8.8%
Hispanic 54.6% 43.6% 33.7% 22.1% 19.2% 17.3%
Other 57.7% 46.8% 37.3% 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 Iowa, by Age


 

Number of Households in Iowa, by Age, Race, and Ethnicity
 
  Younger than 65 65 and older
White Black Hispanic Other White Black Hispanic Other
1990 757,698 13,121 7,258 8,315 272,274 1,961 929 472
2000 813,087 17,536 18,604 17,423 276,443 2,798 1,404 1,163
2010 840,080 25,610 34,780 25,140 287,840 3,230 2,410 2,460
2020 796,356 37,948 51,740 38,327 345,739 5,287 5,744 5,191
2030 725,352 50,057 71,855 56,958 421,682 8,950 10,686 6,920
2040 705,135 64,390 92,873 77,325 423,085 13,462 17,519 10,407
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 Iowa, 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.

Iowa Homeownership Rates, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 70.0% 72.4% 72.1% 72.4% 72.4% 72.1%
White 70.9% 73.9% 74.4% 75.6% 75.8% 75.2%
Black 38.7% 37.9% 31.1% 25.7% 40.3% 55.3%
Hispanic 48.7% 46.6% 50.8% 56.5% 59.6% 62.1%
Other 38.3% 46.1% 49.9% 54.3% 57.6% 61.0%
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 Iowa and Nationwide

Iowa Homeownership Rates, by Age
 
  1990 2000 2010 2020 2030 2040
Younger than 65 66.7% 70.0% 69.6% 69.2% 69.2% 70.3%
65 and older 79.4% 79.6% 79.9% 80.6% 78.7% 75.9%
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 Iowa 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.