  We investigate the relationship between the present day optical luminosity
function of galaxies and the X-ray luminosity function of Seyfert 1s to
determine the fraction of galaxies which host Seyfert 1 nuclei and their
Eddington ratios. The local type 1 AGN X-ray luminosity function is well
reproduced if ~ 1% of all galaxies are type 1 Seyferts which have Eddington
ratios of ~ 10^{-3}. However, in such a model the X-ray luminosity function is
completely dominated by AGN in E and S0 galaxies, contrary to the observed mix
of Seyfert host galaxies. To obtain a plausible mix of AGN host galaxy
morphologies requires that the most massive black holes in E and S0 galaxies
accrete with lower Eddington ratios, or have a lower incidence of Seyfert
activity, than the central black holes of later type galaxies.
