Iowa | Urban Institute

PROJECT

Forecasting State and National Trends in Household Formation and Homeownership

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

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%

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.

Research Areas

Housing finance

Policy Centers

Housing Finance Policy Center