# Owner-occupancy

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Status of a person who owns their home

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**Owner-occupancy** or **home-ownership** is a form of [housing tenure](/source/Housing_tenure) in which a person, called the **owner-occupier**, **owner-occupant**, or **home owner**, owns the [home](/source/Home) in which they live.[1] The home can be a [house](/source/House), such as a [single-family house](/source/Single-family_detached_home), an [apartment](/source/Apartment), [condominium](/source/Condominium), or a [housing cooperative](/source/Housing_cooperative). In addition to providing [housing](/source/Housing), owner-occupancy also functions as a [real estate investment](/source/Real_estate_investing).

Housing can vary widely in occupant ownership status and [public investment](/source/Public_investment).

## Acquisition

Some homes are constructed by the owners with the intent to occupy. Many are [inherited](/source/Inheritance). A large number are purchased as new homes from a [real estate developer](/source/Real_estate_development) or as an existing home from a previous [landlord](/source/Landlord) 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 enough [savings](/source/Saving) on hand to pay the entire amount outright. In developed countries, [mortgage loans](/source/Mortgage_loans) are available from financial institutions in return for [interest](/source/Interest). If the homeowner fails to meet the agreed repayment schedule, a [foreclosure](/source/Foreclosure) (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 certain [means-tested](/source/Means_test) qualifications to qualify for government aid, such as being a first-time homebuyer or having an income below a certain threshold.[2]

## Pros and cons

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](/source/Homeowner_association), and deed restrictions), protects them from [eviction](/source/Eviction), and creates a right to occupation which can be inherited. Passed-down properties can be rented (as in intentional or [accidental landlording](/source/Accidental_landlord)) or sold as part of an [estate](/source/Estate_(law)). In some jurisdictions, it also confers certain legal rights with regard to [abutters](/source/Abutter).

Houses and the land they sit on are often expensive, and the combination of monthly [mortgage](/source/Mortgage_loan), 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 to [move](/source/Relocation_(personal)) at a future date. Some homeowners see their purchase as an [investment](https://en.wikipedia.org/w/index.php?title=Commodification_of_housing&action=edit&redlink=1) and intend to sell or to rent the property after renovating or letting the house appreciate in value (known as [flipping](/source/Flipping) if done quickly). In 2024, the median American homeowner's net worth was about USD $400,000, and the median American renter's net worth was USD $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 (especially [English-speaking countries](/source/English-speaking_countries)) because it was one way for people to acquire [generational wealth](/source/Generational_wealth) under the [commodification of housing](https://en.wikipedia.org/w/index.php?title=Commodification_of_housing&action=edit&redlink=1), it was believed to encourage savings, and it was thought to promote [civic engagement](/source/Civic_engagement). However, the housing market crash during the [2008 financial crisis](/source/2008_financial_crisis) in most of the English-speaking world has caused academic and policy-makers to question this logic.[5]

## Political influence

Owning a home influences how an individual views the role of government. Data from [OECD](/source/OECD) countries shows that when housing prices rise, individuals are more critical of the [welfare state](/source/Welfare_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 of [voter turnout](/source/Voter_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](/source/Jos%C3%A9_Luis_de_Arrese), the [Falangist](/source/Falangist) [minister of housing](/source/Ministry_of_Housing_(Spain)) in [Francoist Spain](/source/Francoist_Spain) explicitly called for "a Spain of home owners" rather than "proletarians".[7]

Homeowners are usually required to pay [property tax](/source/Property_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 most [Canadian provinces](/source/Canadian_province) home purchasers must pay a one-time tax called a [Property Transfer Tax](/source/Property_Transfer_Tax) (Land Transfer Tax) which is based on the cost of the home.

## International statistics

The home ownership rate is the ratio of owner-occupied units to total residential units in a specified area.[8][*[better source needed](https://en.wikipedia.org/wiki/Wikipedia:Verifiability#Questionable_sources)*]

The median age of US homebuyers has increased in recent decades, for both first-time buyers and repeat buyers.[9]

Percentage of owner-occupied units in urban areas, by country

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% — —

## See also

- [Home ownership in Australia](/source/Home_ownership_in_Australia)

- [Homeownership in Germany](/source/Homeownership_in_Germany)

- [Homeownership in the United States](/source/Homeownership_in_the_United_States)

- [Imputed rent](/source/Imputed_rent)

- [Negative equity](/source/Negative_equity)

- [Ownership](/source/Ownership)

- [Property](/source/Property)

## References

1. **[^](#cite_ref-1)** Koren, Liran (2022-04-13). ["Owner-Occupied vs. Non-Owner-Occupied Real Estate: What's the Difference?"](https://luxurypropertycare.com/owner-occupied-vs-non-owner-occupied/). *Luxury Property Care*. Retrieved 2023-07-28.

1. **[^](#cite_ref-2)** ["Public spending on financial support to homebuyers"](https://www.oecd.org/els/family/PH2-1-Public-spending-support-to-home-buyers.pdf) (PDF). *OECD*. 16 December 2019. Retrieved 21 September 2020.

1. **[^](#cite_ref-3)** Delouya, Samantha (2024-12-16). ["The median renter in America has a net worth of $10,400. The median homeowner's net worth is $400,000 | CNN Business"](https://www.cnn.com/2024/12/16/economy/renter-homeowner-net-worth-gap). *CNN*. Retrieved 2025-06-16.

1. **[^](#cite_ref-4)** ["The Advantages of Renting"](https://www.npr.org/templates/story/story.php?storyId=100961300).

1. **[^](#cite_ref-5)** ["Shelter, or burden?"](https://www.economist.com/briefing/2009/04/16/shelter-or-burden). *The Economist*. 2009-04-16.

1. **[^](#cite_ref-6)** Ansell, Ben W. (2019). ["The Politics of Housing"](https://doi.org/10.1146%2Fannurev-polisci-050317-071146). *Annual Review of Political Science*. **22**: 165–185. [doi](/source/Doi_(identifier)):[10.1146/annurev-polisci-050317-071146](https://doi.org/10.1146%2Fannurev-polisci-050317-071146).

1. **[^](#cite_ref-Arrese_7-0)** de Arrese, José Luis (1959-05-02). [""No queremos una España de proletarios sino de propietarios" - Archivo Linz de la Transición española | Fundación Juan March"](https://www.march.es/es/coleccion/archivo-linz-transicion-espanola/ficha/no-queremos-espana-proletarios-sino-propietarios--linz%3AR-73814) ["We do not want a Spain of proletarians, but [a Spain] of home owners"]. *www.march.es - ABC* (in European Spanish). Retrieved 12 October 2025.

1. **[^](#cite_ref-8)** ["What Is the Homeownership Rate?"](https://web.archive.org/web/20241009073525/https://www.thebalancemoney.com/the-homeownership-rate-what-is-it-and-how-is-it-calculated-4175698). *www.thebalancemoney.com*. 9 November 2021. Archived from the original on 9 October 2024. Retrieved 9 October 2024.{{[cite web](https://en.wikipedia.org/wiki/Template:Cite_web)}}: CS1 maint: bot: original URL status unknown ([link](https://en.wikipedia.org/wiki/Category:CS1_maint:_bot:_original_URL_status_unknown))

1. **[^](#cite_ref-NARprofiles_DataThru2025_9-0)** Exhibit 1-1: Median Age of Home Buyers, 1981–2025. ["2025 Profile of Home Buyers and Sellers"](https://www.greaterbergenrealtors.com/clientuploads/Broker_Page/2025_Profile_of_Home_Buyers_and_Sellers.pdf) (PDF). National Association or Realtors. 2026. [Archived](https://web.archive.org/web/20260308202106/https://www.greaterbergenrealtors.com/clientuploads/Broker_Page/2025_Profile_of_Home_Buyers_and_Sellers.pdf) (PDF) from the original on 8 March 2026.

1. ^ [***a***](#cite_ref-:0_10-0) [***b***](#cite_ref-:0_10-1) [Housing Finance Information Network (HOFINET)](http://hofinet.org)

1. **[^](#cite_ref-11)** ["Homeownership rate in selected European countries in 2023, by country"](https://www.statista.com/statistics/246355/home-ownership-rate-in-europe/). *[Statista](/source/Statista)*. 5 September 2024. Retrieved 9 October 2024.

1. **[^](#cite_ref-12)** ["Síntese de Indicadores Sociais"](https://www.ibge.gov.br/estatisticas/sociais/habitacao/9221-sintese-de-indicadores-sociais.html). *IBGE* (in Portuguese). Retrieved 2024-12-03.

1. **[^](#cite_ref-13)** C.Textor (25 April 2024). ["Share of households owning the housing property they occupy in Hong Kong from 2000 to 2023"](https://www.statista.com/statistics/1463140/hong-kong-share-of-home-ownership/). *[Statista](/source/Statista)*. Retrieved 9 October 2024.

1. **[^](#cite_ref-14)** ["Statistics Iceland: Many low-income households in central Reykjavík and in Ásbrú"](https://statice.is/publications/news-archive/census/census-2021-households-income-and-car-availability/). *Statistics Iceland*. Retrieved 2024-10-09.

1. **[^](#cite_ref-15)** [https://censusnepal.cbs.gov.np/results/household](https://censusnepal.cbs.gov.np/results/household)

1. **[^](#cite_ref-16)** ["HOUSING CHARACTERISTICS BY RESIDENTIAL STATUS, OWNERSHIP AND NUMBER OF ROOMS BY REGION, PAKISTAN"](https://www.pbs.gov.pk/sites/default/files/population/2023/tables/table_25_national.pdf) (PDF).

1. **[^](#cite_ref-17)** ["The 20-Year Housing Development Master Plan BE 2560-2579 (2017-2036)"](https://www.ohchr.org/sites/default/files/documents/issues/housing/cfi-housing-affordability/submission-srhousing-cfi-housing-affordability-states-Thailand.doc). *www.ohchr.org*. 2021. Retrieved 9 October 2024.

1. **[^](#cite_ref-18)** ["Homeownership Rate"](https://www.ibisworld.com/us/bed/homeownership-rate/4623/). *www.ibisworld.com*. 30 September 2024. Retrieved 9 October 2024.

## Further reading

- Kwak, Nancy H. *A World of Homeowners: American Power and the Politics of Housing Aid* ( University of Chicago Press, 2015). 328 pp.

## External links

- [Home Ownership Rate by U.S. State](https://archive.today/20140926003639/https://www.quandl.com/c/usa/home-ownership-rate-all-states) – Aggregation of Federal Reserve economic data

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Adapted from the Wikipedia article [Owner-occupancy](https://en.wikipedia.org/wiki/Owner-occupancy) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Owner-occupancy?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.