The Future of Household Formation and Homeownership in Michigan

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 Michigan, 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 Michigan, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 3,415,992 3,784,629 3,872,330 4,024,982 4,175,245 4,208,974
White 2,881,725 3,090,795 3,095,180 3,132,594 3,159,192 3,079,446
Black 437,296 488,773 519,880 547,427 559,130 553,973
Hispanic 50,243 82,542 114,730 155,721 203,682 253,696
Other 46,728 122,519 142,540 189,239 253,240 321,859
  Household Growth: Michigan Household Growth: Nationwide
2010–2020 2020–2030 2030–2040 2010–2020 2020–2030 2030–2040
Total 3.9% 3.7% 0.8% 5.9% 6.4% 5.4%
White 1.2% 0.8% −2.5% 0.1% 0.5% −1.3%
Black 5.3% 2.1% −0.9% 9.9% 10.1% 8.8%
Hispanic 35.7% 30.8% 24.6% 22.1% 19.2% 17.3%
Other 32.8% 33.8% 27.1% 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 Michigan, by Age


 

Number of Households in Michigan, by Age, Race, and Ethnicity
 
  Younger than 65 65 and older
White Black Hispanic Other White Black Hispanic Other
1990 2,234,690 358,668 45,591 43,167 647,035 78,628 4,652 3,561
2000 2,389,826 404,222 75,293 112,148 700,969 84,551 7,249 10,371
2010 2,314,150 424,220 102,950 126,110 781,030 95,660 11,780 16,430
2020 2,139,794 417,271 136,056 162,802 992,800 130,156 19,665 26,437
2030 1,934,611 396,099 172,169 212,904 1,224,581 163,032 31,514 40,336
2040 1,850,782 375,868 207,432 265,023 1,228,665 178,105 46,263 56,836
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 Michigan, 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.

Michigan Homeownership Rates, by Race or Ethnicity
 
  1990 2000 2010 2020 2030 2040
Total 71.0% 73.8% 72.1% 71.8% 71.3% 70.6%
White 75.1% 78.7% 78.0% 78.6% 78.5% 78.1%
Black 47.8% 50.8% 45.0% 40.1% 39.6% 38.9%
Hispanic 56.1% 54.7% 56.2% 60.1% 60.3% 60.8%
Other 52.2% 54.9% 57.3% 60.9% 60.5% 60.9%
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 Michigan and Nationwide

Michigan Homeownership Rates, by Age
 
  1990 2000 2010 2020 2030 2040
Younger than 65 69.0% 71.9% 69.2% 67.6% 66.6% 66.5%
65 and older 78.3% 81.0% 81.7% 81.9% 80.1% 77.9%
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 Michigan 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.