Rental Vacancies Rise as Homeownership Rate Ticks Slightly Higher

The vacancy rate for rental units increased nationally last quarter, as the homeownership rate rose slightly, according to newly released data.

The national vacancy rate for rentals was 7.2% in the fourth quarter of 2025, up from 7.1% the prior quarter and 6.9% one year ago, the U.S. Census Bureau reported Tuesday.

Meanwhile, the homeownership rate, measured as the percentage of households living in an owner-occupied home, rose to 65.7% from 65.3% the prior quarter.

"Both homeowner and rental vacancy rates increased modestly, signaling gradual inventory recovery, though levels remain below pre-pandemic norms, particularly on the ownership side," says Realtor.com senior economic research analyst Hannah Jones.

Younger households posted notable gains, with the homeownership rate among those under age 35 rising to 37.9%, up from 36.3% a year earlier.

Homeownership among households 65 and older remained high at 79%, though that was down slightly from a year earlier.

The sharp contrast between age groups aligns with recent data showing the median first-time buyer age rose to 40 last year, highlighting the difficult path to homeownership amid affordability challenges.

For renters, the rising vacancy rate is good news, signaling easing conditions as asking rents cool nationally.

Regional differences remain pronounced. The South recorded the highest rental vacancy rate at 9.1%, followed by the Midwest (7.2%), West (5.5%), and Northeast (5.2%).

Rental vacancy declined year over year in the West, held steady in the Midwest, and increased in both the South and Northeast, signaling rising rental inventory in those regions.

"The South leads in both rental and homeowner vacancy, reflecting stronger supply growth," says Jones. "Meanwhile, the Midwest stands out for the highest homeownership rate (71.3%), underscoring the role of affordability in ownership outcomes."