Which metric reflects the proportion of the population that owns homes versus rents?

• A. Homeownership rate
• B. Vacancy rate
• C. Mortgage rate
• D. Rent-to-income ratio

Answer: (A)

The key idea is measuring how many people own their homes relative to how many rent. The homeownership rate represents the share of occupied housing units that are owner-occupied, calculated as owner-occupied units divided by total occupied units, times 100. This directly shows the balance between owning and renting across the population.

Other metrics describe different things: vacancy rate is about unoccupied units, mortgage rate relates to households with a mortgage, and rent-to-income ratio looks at how affordable rents are for renters. For example, if 75 out of 100 occupied housing units are owned, the homeownership rate is 75%, indicating that three-quarters of households own their homes and the remaining 25% rent.