Owner-occupancy orhome-ownership is a form ofhousing tenure in which a person, called theowner-occupier,owner-occupant, orhome owner, owns thehome in which they live.[1] The home can be ahouse, such as asingle-family house, anapartment,condominium, or ahousing cooperative. In addition to providinghousing, owner-occupancy also functions as areal estate investment.
Some homes are constructed by the owners with the intent to occupy. Many areinherited. A large number are purchased as new homes from areal estate developer or as an existing home from a previouslandlord or owner-occupier.
A house is usually the most expensive single purchase an individual or family makes and often costs several times the annual household income. Given the high cost, most individuals do not have enoughsavings on hand to pay the entire amount outright. In developed countries,mortgage loans are available from financial institutions in return forinterest. If the homeowner fails to meet the agreed repayment schedule, aforeclosure (known as a repossession in some countries) may result.
Many countries offer aid to prospective homebuyers to make their purchases. These measures include grants, subsidized mortgages, and mortgage guarantees. Prospective homebuyers may have to meet certainmeans-tested qualifications to qualify for government aid, such as being a first-time homebuyer or having an income below a certain threshold.[2]
Perspectives regarding the benefits and risks of owner-occupancy are not universally accepted and depend on individual circumstances and motivations.
Home ownership gives occupants the right to modify the building and land as they please (subject to government,homeowner association, and deed restrictions), protects them fromeviction, and creates a right to occupation which can be inherited. Passed-down properties can be rented (as in intentional oraccidental landlording) or sold as part of anestate. In some jurisdictions, it also confers certain legal rights with regard toabutters.
Houses and the land they sit on are often expensive, and the combination of monthlymortgage, insurance, maintenance and repairs, and property tax payments are sometimes greater than monthly rental costs. Buildings may also gain and lose substantial value due to real estate market fluctuations, and selling a property can take a long time, depending on market conditions. This can make home ownership more constraining if the homeowner intends tomove at a future date. Some homeowners see their purchase as aninvestment and intend to sell or to rent the property after renovating or letting the house appreciate in value (known asflipping if done quickly). In 2024, the median homeowner's net worth was about $400,000, and the median renter's net worth was $10,400.[3]
Renting may be more beneficial than owner-occupancy when the renter requires flexibility in moving to where work opportunities are.[4] When a long-term work situation is settled upon, the renter may then reassess the costs of renting and home ownership.
Traditionally, home ownership has been encouraged by governments in Western countries (especiallyEnglish-speaking countries) because it was one way for people to acquiregenerational wealth under thecommodification of housing, it was believed to encourage savings, and it was thought to promotecivic engagement. However, the housing market crash during the2008 Financial Crisis in most of the English-speaking world has caused academic and policy-makers to question this logic.[5]
Owning a home influences how an individual views the role of government. Data fromOECD countries shows that when housing prices rise, individuals are more critical of thewelfare state. Conversely, when housing prices drop, homeowners are more likely to favor government intervention. In the US, areas with high rates of homeownership have higher levels ofvoter turnout. There is also a weak relationship between homeownership and supporting Republican candidates. Data from the UK supports the idea that homeowners view the value of their home as a kind of private, informal insurance policy against economic shocks. A sufficiently valuable home protects the owner without need for government intervention.[6]
José Luis de Arrese, theFalangistminister of housing inFrancoist Spain explicitly called for "a Spain of home owners" rather than "proletarians".[7]
Homeowners are usually required to payproperty tax (or millage tax) periodically. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. In mostCanadian provinces home purchasers must pay a one-time tax called aProperty Transfer Tax (Land Transfer Tax) which is based on the cost of the home.
The home ownership rate is the ratio of owner-occupied units to total residential units in a specified area.[8][better source needed]
| Country | % Owner-Occupied Units in Urban Areas[10] | Urban Population, % of Total[10] | Home ownership rate[11] | |
|---|---|---|---|---|
| % | Year | |||
 Albania | — | — | 95.3 | 2023 |
 Argentina | 67% | 92% | 68.9 | 2017 |
 Armenia | 96% | 64% | — | — |
 Australia | 68% | 89% | 66.3 | 2020 |
 Austria | — | — | 54.3 | 2023 |
 Azerbaijan | 71% | 52% | — | — |
 Belgium | — | — | 71.9 | 2023 |
 Bosnia and Herzegovina | — | — | 91.2 | 2007 |
 Brazil | 74% | 87% | 70.8 | 2022[12] |
 Brunei | — | — | 65.0 | 2019 |
 Bulgaria | 87% | 73% | 86.1 | 2023 |
 Canada | 68% | 81% | 66.5 | 2021 |
 Chile | 69% | 89% | — | — |
 China | 89% | 45% | 96.0 | 2022 |
 Colombia | 50% | 75% | — | — |
 Costa Rica | 75% | 94% | — | — |
 Croatia | — | — | 91.2 | 2023 |
 Cuba | — | — | 90.0 | 2014 |
 Cyprus | — | — | 68.8 | 2023 |
 Czech Republic | 47% | 74% | 76.0 | 2023 |
 Denmark | 54% | 87% | 60.0 | 2023 |
 East Timor | — | — | 49.9 | 2007 |
 Egypt | 37% | 43% | 76.0 | 2019 |
 Estonia | — | — | 80.7 | 2023 |
 European Union | — | — | 69.2 | 2023 |
 Finland | — | — | 69.2 | 2023 |
 France | 47% | 78% | 63.1 | 2023 |
 Germany | 43% | 74% | 47.6 | 2023 |
 Greece | — | — | 69.6 | 2023 |
 Haiti | 60% | 48% | — | — |
 Hong Kong | 53% | 100% | 50.4 | 2023[13] |
 Hungary | 93% | 68% | 90.5 | 2023 |
 Iceland | — | — | 75.0 | 2021[14] |
 India | 87% | 30% | 86.6 | 2011 |
 Indonesia | 67% | 54% | 84.0 | 2019 |
 Iran | — | — | 60.5 | 2017 |
 Ireland | — | — | 69.4 | 2023 |
 Israel | — | — | 64.6 | 2019 |
 Italy | 80% | 68% | 75.9 | 2024 |
 Japan | — | — | 55.0 | 2021 |
 Kazakhstan | 96% | — | 98.0 | 2024 |
 Kenya | — | 22% | 75.0 | 2019 |
 Laos | — | — | 95.9 | 2015 |
 Latvia | — | — | 82.8 | 2023 |
 Lithuania | — | — | 88.8 | 2023 |
 Luxembourg | — | — | 67.6 | 2023 |
 Malawi | — | 19% | — | — |
 Malaysia | — | 72% | 76.9 | 2019 |
 Malta | — | — | 74.7 | 2023 |
 Mexico | 71% | 78% | 80.0 | 2009 |
 Mongolia | — | 58% | — | — |
 Montenegro | — | — | 91.0 | 2023 |
 Morocco | 62% | 57% | — | — |
 Myanmar | — | — | 85.5 | 2014 |
 Namibia | 69% | 35% | — | — |
 Nepal | — | — | 86.0 | 2021[15] |
 Netherlands | 59% | 83% | 70.2 | 2023 |
 New Zealand | 67% | 87% | 64.5 | 2018 |
 Nigeria | 10% | 50% | 25.0 | 2019 |
 North Macedonia | — | — | 85.8 | 2023 |
 Norway | 77% | 78% | 79.2 | 2023 |
 Oman | — | — | 83.0 | 2014 |
 Pakistan | — | 38% | 82.0 | 2023[16] |
 Panama | 66% | 75% | — | — |
 Peru | — | 72% | — | — |
 Philippines | 80% | 66% | — | — |
 Poland | 78% | 61% | 87.3 | 2023 |
 Portugal | — | — | 76.0 | 2023 |
 Romania | 97% | 54% | 95.6 | 2023 |
 Russia | 81% | 73% | 92.6 | 2023 |
 Rwanda | — | 19% | — | — |
 Saudi Arabia | — | — | 62.1 | 2019 |
 Senegal | — | 43% | — | — |
 Serbia | — | — | 91.6 | 2023 |
 Singapore | 87% | 100% | 87.9 | 2020 |
 Slovakia | — | — | 93.6 | 2023 |
 Slovenia | — | — | 75.2 | 2023 |
 South Africa | 62% | 62% | 69.7 | 2021 |
 South Korea | 56% | 82% | 57.3 | 2021 |
 Spain | 85% | 77% | 75.3 | 2023 |
 Sri Lanka | 82% | 15% | — | — |
 Sweden | 41% | 85% | 64.9 | 2023 |
 Switzerland | 40% | 74% | 42.3 | 2023 |
 Taiwan | — | — | 83.9 | 2010 |
 Tanzania | — | 26% | — | — |
 Thailand | 75% | 34% | 74.0 | 2021[17] |
 Trinidad and Tobago | — | — | 76.0 | 2013 |
 Tunisia | 78% | 67% | — | — |
 Turkey | 81% | 70% | 56.7 | 2023 |
 Uganda | — | 13% | — | — |
 Ukraine | — | 68% | — | — |
 United Arab Emirates | — | — | 28.0 | 2017 |
 United Kingdom | 50% | 90% | 65.2 | 2023 |
 United States | 65% | 82% | 65.7 | 2024[18] |
 Uruguay | 59% | 93% | — | — |
 Venezuela | 83% | 94% | — | — |
 Vietnam | — | 28% | 90.0 | 2020 |
 Zimbabwe | — | 38% | — | — |
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