The Future of Household Formation and Homeownership in Massachusetts

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 Massachusetts, 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 Massachusetts, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 2,244,057 2,444,598 2,546,920 2,679,315 2,825,818 2,906,970
White 2,026,157 2,089,991 2,060,350 2,029,372 1,973,850 1,841,626
Black 91,161 107,116 138,300 166,973 199,610 232,613
Hispanic 78,305 120,899 183,750 289,028 394,722 507,192
Other 48,434 126,592 164,520 193,942 257,637 325,539
  Household Growth: Massachusetts Household Growth: Nationwide
2010–2020 2020–2030 2030–2040 2010–2020 2020–2030 2030–2040
Total 5.2% 5.5% 2.9% 5.9% 6.4% 5.4%
White −1.5% −2.7% −6.7% 0.1% 0.5% −1.3%
Black 20.7% 19.5% 16.5% 9.9% 10.1% 8.8%
Hispanic 57.3% 36.6% 28.5% 22.1% 19.2% 17.3%
Other 17.9% 32.8% 26.4% 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 Massachusetts, by Age


 

Number of Households in Massachusetts, by Age, Race, and Ethnicity
 
  Younger than 65 65 and older
White Black Hispanic Other White Black Hispanic Other
1990 1,516,148 78,194 73,677 44,153 510,009 12,967 4,628 4,281
2000 1,571,005 92,437 113,759 113,772 518,986 14,679 7,140 12,820
2010 1,535,920 118,210 167,880 146,440 524,430 20,090 15,870 18,080
2020 1,372,007 134,196 253,732 170,053 657,364 32,777 35,296 23,890
2030 1,180,522 148,675 328,939 221,004 793,328 50,935 65,783 36,633
2040 1,055,908 166,138 406,356 269,951 785,718 66,476 100,836 55,587
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 Massachusetts, 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.

Massachusetts Homeownership Rates, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 59.2% 61.7% 62.3% 62.1% 61.4% 60.5%
White 62.7% 66.9% 68.9% 69.9% 70.4% 70.8%
Black 27.7% 32.4% 34.7% 38.3% 40.8% 43.4%
Hispanic 17.3% 21.8% 24.8% 27.3% 29.8% 31.5%
Other 39.9% 39.7% 45.5% 52.8% 56.7% 60.3%
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 Massachusetts and Nationwide

Massachusetts Homeownership Rates, by Age
 
  1990 2000 2010 2020 2030 2040
Younger than 65 57.8% 59.9% 60.0% 58.3% 57.0% 56.2%
65 and older 63.9% 68.1% 70.3% 71.8% 70.0% 68.7%
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 Massachusetts 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.