Data reveals persistent minority homeownership gaps
The National Association of REALTORS has released a report that highlights homeownership trends among each racial group in the last 10 years. The report also examines where most of minority homeowners are located and which areas are more affordable for these households. Additionally, using the NAR® Profile of Home Buyers and Sellers data from 2020, the report also looks into the characteristics of who purchases homes, why they purchase, what they purchase, and the financial background for buyers based on race.
Most notably, the data revealed that minority homeownership stubbornly lags behind the national rate, with Black Americans facing some of the toughest hurdles to achieving this essential part of the American Dream, according to the National Association of Realtors®. NAR officials say this data reinforces need for implementation of key housing policy initiatives to close persistent minority homeownership gaps.
• The U.S. homeownership rate was 64.2% in 2019. At 69.8%, the rate for non-Hispanic white Americans exceeds the national rate. However, the Black homeownership rate – 42% – represents a Black-white homeownership gap of almost 30%. The homeownership rates for Asian Americans and Hispanic Americans are 60.7% and 48.1%, respectively.
• Black households – 43% – are more than twice as likely than white households – 21% – to have student loan debt, with a median student loan debt for Black households of $40,000 compared to $30,000 for white households.
• Black applicants were rejected for mortgage loans at a rate 2.5 times greater than white applicants – 10% vs. 4%, respectively. Nationwide, 43% of Black households can afford to buy the typical home compared to 63% of white households.
View NAR’s Snapshot of Race & Home Buying in America report here: https://www.nar.realtor/research-and-statistics/research-reports/a-snapshot-of-race-and-homebuying-in-america.
Learn more about NAR’s fair housing initiatives by visiting https://www.nar.realtor/fair-housing.