Minority homeownership lags behind the national rate, with Black Americans facing the biggest hurdles, according to the NAR Snapshot of Race & Home Buying in America report. The 42% homeownership rate for Black Americans is nearly 30% less than the 69.8% rate for white Americans. The overall U.S. homeownership rate is 64.2%, with a rate of 60.7% for Asian Americans and 48.1% for Hispanic Americans.
Home affordability: 43% of Black households can afford to buy the typical home compared to 63% of white households, 71% of Asian households and 54% of Hispanic households, according to the study. Wide variances in affordability exist from state to state.
Student loan debt: Black households (43%) are more than twice as likely than white households (21%) to have student loan debt.
Mortgage loans: Black applicants were rejected for mortgage loans at a rate 2.5 times greater than white applicants—10% vs. 4%, respectively.
“The residential housing market’s strong performance during the pandemic helped homeowners enjoy a significant increase in wealth via approximately $1 trillion in additional home equity over the last year,” says NAR chief economist Lawrence Yun. “First-time homebuyers, many of whom are minorities, are being priced out of owning a home because of rapidly rising home prices resulting from historically-low housing inventory. For Black Americans, in general, the greater likelihood of having student loan debt, combined with lower household incomes and accrued savings when compared to the national average, adds to the challenge.”
Photo: iStock.com/Angelina Bambina
